Over the past few months, Ethereum has failed to meet the expectations of traders, with its price showing a downward trend. The price of Ethereum has decreased by 23% in the last 30 days, leaving many investors disappointed. The launch of Spot Ethereum ETFs was supposed to bring a bullish surge, but that has not materialized. Technical analysis indicates that the current performance of Ethereum is following a similar pattern to that observed in 2016.
Despite the concerns about the price, an in-depth analysis of Ethereum’s historical price movements reveals that the current situation may not be as unfamiliar as it initially appears. According to popular crypto analyst Benjamin Cowen, Ethereum’s price action in 2024 closely resembles its performance in 2016 when viewed on a monthly candlestick chart. The resemblance becomes even more apparent when looking at the monthly candlestick patterns from 2016 and 2024, with similarities in the way the candles closed.
In 2016, Ethereum experienced a massive rally of 19,000%, reaching $1,590 for the first time. If the current trend continues to mirror the pattern from 2016, investors can expect a green monthly close for Ethereum in September, followed by three consecutive bearish months from October to December. This repetition of price action could potentially lead to a notable rally above Ethereum’s current all-time high, bringing significant profits to bullish investors.
As of the time of writing, Ethereum is trading at $2,445, showing a decline of 10.85% in the past seven days and 23% in the last 30 days. If the current trend continues to follow the 2016 pattern, Ethereum’s bearish momentum may continue throughout the rest of the year. However, there is still hope for Ethereum bulls, as the cryptocurrency is hovering around a critical support level near the 0.382 Fibonacci retracement level, just above $2,400. A strong bounce from this level could signal the start of an upward trend, leading to a close above the monthly open by the end of September.
Despite the current challenges, there is still potential for Ethereum to surge above $3,000, $4,000, and even $5,000 in the future. The historical patterns and technical analysis suggest that Ethereum’s price action may follow a familiar path, offering opportunities for investors to capitalize on potential rallies and profits. As the cryptocurrency market continues to evolve, it is essential for traders to stay informed and adapt their strategies to navigate the volatility and uncertainty in the space.
