Ethereum Appears ‘Bottomed Out,’ Analyst Predicts A Rally Is Near
Cryptocurrency analyst Mister Crypto says that Ethereum (ETH) appears to have “hit bottom.” The analyst said that investor confidence in ETH continues to weaken due to the relatively bleak performance of digital asset prices in 2024.
Is Ethereum about to rebound?
Unlike Bitcoin (BTC) and Solana (SOL), which have soared 146% and 154% respectively over the past year, Ethereum has only gained a modest 32% over the same period. As such, ETH holders are understandably frustrated by the digital asset’s price action, with some whales liquidating their holdings for losses of up to $1 million.
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However, some analysts now believe that it may finally be time for Ethereum to shake off its stagnation. Cryptocurrency trader Mister Crypto shared the following monthly chart of ETH/BTC on X, showing the price of ETH bouncing off the long-term trendline before entering a parabolic run.
This analysis is consistent with a recent study Report A four-year low of 0.031 ETH/BTC is highlighted on the weekly chart. A potential rebound from this multi-year support level could allow ETH to outperform BTC in the short term.
Cryptocurrency analyst Merlijn The Trader also discovered that a bullish falling wedge pattern is forming on Ethereum’s 2-day chart. Merlijn said a breakout to the upside could make Ethereum’s next move “legendary.”
For the uninitiated, a bullish falling wedge is a technical chart pattern that forms when an asset price consolidates between two downward sloping converging trend lines. It usually signals a potential trend reversal or continuation, with an upward breakout expected once price breaks above the upper trendline.
In the case of Ethereum, its price must decisively break above the $3,400 level to confirm the bullish falling wedge pattern. Failure to do so could result in ETH falling to the next major support level at $3,000, and possibly $2,400.
Finally, veteran cryptocurrency market commentator Poseidon provides a more macro perspective on ETH’s price action. The analyst noted that Ethereum has been trading within a range over the past four years. Based on Fibonacci price extension, a break above the key $4,000 resistance level could push ETH above $10,000.
2025: The year of the copycat season?
Mature altcoin seasons often require ETH to lead the market. Therefore, Ethereum’s strong performance in 2025 could significantly increase the likelihood of an eagerly anticipated altcoin season. Fortunately, many investors are optimistic about ETH’s prospects this year.
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December 2024, analyst at brokerage firm Bernstein commented The risk-reward ratio for ETH is becoming increasingly attractive. Likewise, shorthand research Predictive ETH could outperform BTC in the first quarter of 2025, with price targets as high as $8,000.
However, resistance at $4,000 remains ETH’s Achilles heel. At the time of writing, ETH is trading at $3,280, down 2.1% in the past 24 hours.
Featured images from Unsplash, charts from X and TradingView.com
