The Ethereum price has been a topic of concern for many traders and investors in recent months. The current bearish trend that Ethereum finds itself in has left many disappointed, especially after the hype surrounding the launch of Spot Ethereum ETFs. However, taking a closer look at the technical analysis and historical price movements of Ethereum, it becomes apparent that the current situation might not be as dire as it seems.
Popular crypto analyst Benjamin Cowen has been conducting an ongoing analysis that suggests Ethereum’s price action in 2024 closely mirrors its performance in 2016 when viewed on a monthly candlestick chart. The pattern of repetition is striking, with Ethereum closing monthly candlesticks the same way as it did in 2016 for eight consecutive months. This historical comparison can provide valuable insights into how Ethereum might continue to play out for the rest of the year.
Looking back at 2016, Ethereum eventually went on an impressive 19,000% rally, reaching $1,590 for the first time. If the pattern continues to play out like in 2016, investors can expect a green monthly close for Ethereum in September, followed by three consecutive bearish months from October to December. However, if this repetition extends beyond December 2024, Ethereum could see a significant price rally surpassing its current all-time high, bringing profitability to eager Ethereum bulls.
As of now, Ethereum is trading at $2,445, experiencing a decline of 10.85% over the past seven days and 23% over the past 30 days. The bearish momentum that Ethereum is currently facing might persist throughout the remainder of the year if the pattern continues to mirror that of 2016. Nevertheless, there is still hope for Ethereum bulls as the cryptocurrency is hovering around a critical support level at the 0.382 Fibonacci retracement level, slightly above $2,400.
A significant bounce from the current support level could signify the beginning of an upward trend for Ethereum. This could lead to a monthly close above its opening price by the end of September. There is a possibility of Ethereum surging above $3,000, then $4,000, and eventually reaching $5,000 in the foreseeable future. This bullish scenario is still on the table for Ethereum, offering hope to investors and traders alike.
While Ethereum’s recent price action might seem disappointing, a deeper analysis reveals a pattern that closely resembles its performance in 2016. By understanding this historical comparison and closely monitoring key support levels, investors can potentially capitalize on the future price movements of Ethereum. Ultimately, patience and strategic decision-making will be crucial in navigating the volatile cryptocurrency market and seizing profitable opportunities.