Ethereum (ETH) experienced a significant price drop of 9.3% in the past week, falling from $3,630 to $3,235. Despite this fall, crypto analysts remain optimistic about its long-term potential. The digital asset is currently trying to maintain its support at $3,000, a critical psychological level.
Although the current bull market saw Bitcoin set new all-time highs, Ethereum’s performance hasn’t matched up. However, analysts highlight an inverse head-and-shoulders pattern forming on Ethereum's 3-day chart, suggesting a bullish trend reversal might be on the horizon.
Renowned analysts like MikyBull and Wolf are closely monitoring this pattern, with predictions suggesting it could boost Ethereum's price to as high as $7,200 if completed successfully. Ali Martinez, another seasoned analyst, sees a potential bullish opportunity if ETH hits $2,900, suggesting a possible move towards new ATHs.
Additionally, trader Merlijn The Trader identified a bullish Moving Average Convergence Divergence (MACD) signal on Ethereum’s 4-hour chart, indicating a possible momentum shift toward bullishness. Merlijn suggests this could push ETH to the $3,700 level soon.
With Ethereum trading about 33% below its all-time high, renewed institutional interest, particularly following the US SEC's approval of spot ETH ETFs, might help ETH gain the momentum needed to reach new heights. Reported projections even suggest ETH could outperform Bitcoin in 2025 with a possible rise to $8,000.
Overall, for ETH to continue its upward trajectory, it must overcome the $4,000 resistance level, setting the stage for new all-time highs potentially.
