The recent price action of Ethereum has left many traders disappointed as it has failed to meet their expectations. The cryptocurrency is currently stuck in a bearish trend, with a 23% decrease in price over the last 30 days. This downturn has come as a surprise to many investors who were hopeful for a bullish surge after the launch of Spot Ethereum ETFs.
Upon closer inspection, it becomes apparent that Ethereum’s current performance is not as unique as it may seem. A comparison of Ethereum’s price action in 2024 with that of 2016 shows a striking similarity. Popular crypto analyst Benjamin Cowen has highlighted this pattern, noting that Ethereum’s monthly candlesticks in 2024 closely mirror those of 2016. This repetition of price movements suggests that Ethereum may follow a similar trajectory as it did in 2016.
Looking back at 2016, Ethereum experienced a massive 19,000% rally leading to an all-time high of $1,590. If history repeats itself, we may see a green monthly close for Ethereum in September followed by three bearish months from October to December. However, if this repetition continues into the new year, Ethereum could embark on a notable price rally surpassing its current all-time high. This would bring significant gains to bullish Ethereum investors.
At the time of writing, Ethereum is trading at $2,445, reflecting a 10.85% decline over the past week and a 23% drop over the last month. If the current trend mirrors the 2016 pattern, Ethereum’s bearish momentum could persist for the rest of the year. Nonetheless, there is still hope for Ethereum bulls as the cryptocurrency is hovering around a critical support level near $2,400. A bounce from this level could signal the start of an upward trend, potentially leading to a close above the monthly open by the end of September. This surge could see Ethereum reaching $3,000, $4,000, and even $5,000 in the near future.
While Ethereum’s recent price action may not have met expectations, a historical comparison with 2016 suggests that there may be light at the end of the tunnel. Investors should keep a close eye on the critical support level and monitor Ethereum’s price movements for potential opportunities in the market.
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