Key Insights
- ETH price surged over 2% intraday and defended the $2000 support zone.
- Ethereum reproduced its 2019-21 cycle and could see a massive rally ahead.
Since hitting a 52-week high of $3400 a few weeks ago, Ethereum (ETH) has continued to underperform the broader crypto market.
Amidst the bearish market sentiment, it has dropped more than 20% in a week and revisited the demand zone of $2000.
However, the mighty bulls have succeeded in defending the $2000 mark and a bounceback was observed. Moreover, it sparks hope among investors about a potential surge toward $2500.
At press time, Ethereum price was trading at $2234, noting an intraday rise of over 2.30% in the past 24 hours.
Its market cap stood at $269.20 Billion and the trading volume surged over 12%, witnessing rising investor participation.
Can Ethereum Stage a Powerful Comeback?
A recent post by Ted on X indicates that Ethereum price action on the 2-week time frame mirrors the 2019-21 cycle.
This setup hints that if history repeats the same, Ethereum price could see a potential upswing of over 170% and may reach $6000 by Q2 2025.
However, the ongoing bearish trend still highlights uncertainty among traders and investors.
As ETH price has corrected significantly this month and ETH holders have not had the experience before.
According to a recent post by Daan Crypto Trades, Ethereum coin forms a bearish double top pattern which looks like a ‘M’.
Typically, a breakdown below the pattern’s lower neckline support zone may lead to a harsh slippage toward the $1600 mark.
However, if bulls defend the $2000 mark in the coming sessions, it will invalidate the bearish thesis and could trap the short sellers.
Furthermore, Ethereum’s Sharpe Ratio data from Messari highlighted that it has reached the negative territory at -6.3.
At press time, the Sharpe Ratio (30D) has fallen to historically low levels, indicating reduced risk-adjusted returns.
The trend has previously aligned with ETH’s price bottoms and accumulation phases. If ETH price bounces from there, it could mark an optimal long-term entry point for traders seeking favorable risk-reward setups.
Ethereum Price Prediction: What are the Charts Saying?
Per the Fibonacci retracement analysis on Ethereum’s daily chart, it hints that it has reached the 50% support zone. Typically, a retracement toward the 50% zone is considered as a healthy correction.
If the bear army failed to drag ETH price further, Ethereum crypto could see a sharp bounceback and may regain the bullish momentum.
However, ETH bulls have many challenges to reclaim the bullish path. Firstly, ETH price needs to reclaim the 20 day EMA. Furthermore, it needs to cross above the $2500 mark for a trend reversal confirmation.
In case of rejection around the $2500 it will confirm the bearish trend which could pave the way toward a $1700 to hunt the liquidation zone.
Going forward, the Open Interest (OI) has surged over 4.18% to $20.25 Billion, highlighting a significant long addition activity in the past 24 hours.
Moreover, the Long/Short ratio stood at 1.03, where more than 50% of long positions were made against 49% of shorts which highlights that traders were anticipating a potential price surge ahead.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
