In recent months, Ethereum has failed to meet the expectations of traders, with its price plummeting by 23% over a 30-day period. This bearish trend has dashed the hopes of many ETH investors who were anticipating a surge in price following the launch of Spot Ethereum ETFs.
Despite the current downturn, a closer look at Ethereum’s historical price movements reveals that the current situation may not be as unexpected as it seems. Popular crypto analyst Benjamin Cowen’s ongoing analysis shows that Ethereum’s price action in 2024 closely mirrors its performance in 2016 when viewed on a monthly candlestick chart. This pattern of repetition has been consistent throughout the year, with Ethereum closing monthly candlesticks in a similar manner to 2016 for eight consecutive months.
If Ethereum continues to follow the pattern observed in 2016, investors may see a green monthly close for Ethereum in September, followed by three consecutive bearish months from October to December. However, if the price action repetition persists beyond December 2024, Ethereum could potentially embark on 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, reflecting a 10.85% decline over the past week and a 23% drop over the last month. If Ethereum’s current trend aligns with the 2016 pattern, the bearish momentum could persist throughout the remaining months of the year. 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 support level could signal the beginning of an upward trend for Ethereum, potentially leading to a close above its monthly open by the end of September. If this scenario unfolds, we could see Ethereum surging above $3,000, reaching $4,000, and possibly even hitting $5,000 in the future.
While Ethereum’s recent price action may have disappointed some traders, a deeper look into historical patterns and potential future outlooks suggests that there is still room for optimism. By closely monitoring key support levels and technical indicators, investors can better position themselves to capitalize on potential price movements in the coming months.