The Ethereum price action has been a topic of concern for many traders over the past few months. The current bearish trend in Ethereum has led to a 23% decrease in its price over a 30-day period. This disappointing performance has left many ETH investors puzzled, especially after the launch of Spot Ethereum ETFs, which was expected to trigger a bullish surge. However, a closer look at Ethereum’s historical price movements reveals that the current situation might not be as unfamiliar as it appears.
Popular crypto analyst Benjamin Cowen has been conducting an ongoing analysis of Ethereum’s price action in 2024. According to Cowen, Ethereum’s performance in 2024 closely mirrors what was observed in 2016 when viewed on the monthly candlestick chart. The pattern of repetition is evident, with Ethereum closing monthly candlesticks in a similar way as it did in 2016 for eight consecutive months. This consistency suggests that Ethereum may continue to follow a similar path for the remainder of the year.
If Ethereum continues to mimic the price action from 2016, Cowen speculates that Ethereum could see a green monthly close in September, followed by three consecutive bearish months from October to December. This pattern is reminiscent of what happened in 2016 before Ethereum went on a massive rally of 19,000%, reaching $1,590 for the first time. If the price action repetition continues after December 2024, Ethereum could potentially see a significant price rally above its current all-time high, bringing profitability to bullish investors.
At the time of writing, Ethereum is trading at $2,445, showing a decline of 10.85% over the past seven days and 23% over the past 30 days. The current bearish momentum in Ethereum may persist throughout the remainder of the year if it continues to mirror the 2016 pattern. However, there is still hope for Ethereum bulls, as the cryptocurrency is currently hovering around a critical support level at the 0.382 Fibonacci retracement level, just above $2,400. A significant bounce from this level could signal the start of an upward trend, leading to a close above its monthly open by the end of September.
Future Price Potential
Despite the current bearish trend, there is still potential for Ethereum to surge above $3,000, $4,000, and even $5,000. If Ethereum follows the 2016 pattern, investors could see a profitable year ahead as the cryptocurrency surpasses its previous all-time high. The critical support level and historical price analysis offer a glimmer of hope for Ethereum bulls, indicating that the future price movement may not be as bleak as it seems.
Ethereum’s price action in 2024 appears to be following a familiar pattern that was observed in 2016. Despite the current bearish trend, there is optimism for a potential price rally in the coming months. Investors should keep a close eye on key support levels and historical price movements to make informed decisions about their Ethereum investments.