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Over the last week, Ethereum (ETH) has fallen by 9.3%, going from $3,630 on January 3 to $3,235 at the time of writing. While ETH is looking to defend the psychologically significant support level at $3,000, some crypto analysts remain confident that the digital asset’s long-term price trajectory is bullish.
Can Ethereum recover? Analysts weigh in
While the current cryptocurrency bull market has seen Bitcoin (BTC) create several new all-time highs (ATH), Ethereum’s price action has remained relatively subdued. Notably, ETH’s ATH of $4,878 recorded in November 2021 remains intact.
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However, ETH’s poor price action during the current market cycle has not dampened crypto analysts’ hopes of a bullish trend reversal. For example, several analysts are closely monitoring the inverse head-and-shoulders pattern forming on the 3-day Ethereum chart.
While a standard head and shoulders pattern is typically bearish, an inverse head and shoulders pattern is considered bullish, signaling a potential reversal in the asset price trend. Analyst MikyBull recently highlighted this formation in a post on X.
Crypto analyst Wolf confirmed MikyBull’s bullish prediction. In their analysis, Wolf highlighted that the successful completion of a head and shoulders inverse pattern could push ETH as high as $7,200.
Senior cryptocurrency analyst Ali Martinez added that a drop to $2,900 would be “very bullish for Ethereum,” creating an excellent buying opportunity before ETH reaches new ATHs. Martinez further noted that if ETH continues to follow its ascending parallel channel, a drop to $2,800 could provide a solid foundation for the next upward move.
Meanwhile, cryptocurrency and forex trader Merlijn The Trader has identified a bullish Moving Average Convergence Divergence (MACD) signal on the 4-hour chart of Ethereum. This indicates that momentum may shift from bearish to bullish. According to Merlijn, this shift in momentum could push ETH to the $3,700 price level.
Will ETH reach a new record high in 2025?
At the time of writing, ETH is trading around 33% below its ATH price. However, the on the rise Institutional interest in the digital asset – particularly after the U.S. Securities and Exchange Commission (SEC) approved spot ETH exchange-traded funds (ETFs) – could provide ETH the momentum needed to eye new ATH.
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A recent report from Steno Research expected that ETH is poised to outperform BTC in 2025, with price projections as high as $8,000. However, Not everyone is convinced of a bullish 2025 for ETH.
To conclude, Ethereum must first overcome the critical resistance level at $4,000 before it can aim to reach new ATHs. At the time of writing, ETH is trading at $3,235, up 0.1% over the past 24 hours.
Featured image from Unsplash, Charts from X and TradingView.com