According to Cointelegraph, Ether (ETH) has faced challenges in gaining upward momentum since the beginning of 2024. Matt Hougan, Chief Investment Officer at Bitwise Asset Management, suggests that Ethereum might be an underdog heading into 2025. Hougan pointed out that Ether has been struggling, especially after hitting a 42-month low against Bitcoin (BTC) on September 16. Despite this, he remains optimistic about Ether's future, although he expects price action to remain sluggish for the rest of the year. Hougan believes the market may reevaluate Ethereum as the November elections approach and regulatory clarity emerges, making it a potential contrarian bet through the end of the year.
Hougan also noted that Solana (SOL), Ether's biggest rival, is up 38% year-to-date, while Ether remains flat. However, Solana's price has also been struggling against Bitcoin, with some analysts predicting it will follow Ether's downtrend. Pseudonymous crypto trader GGG suggested that Ether could see more downside in the short term, comparing the current situation to a bear market rally followed by a lower drop. The debut of the first Ethereum exchange-traded funds in July had little positive impact, with net negative flows and a nearly 30% drop in ETH price since then.
Popular analyst Crypto Bullet mentioned that if ETH price falls further, the next correction could lead to a triple bottom chart formation, potentially sparking a rally in the fourth quarter of 2024. On the 3-day chart, Ether price is retesting its 700-day accumulation range, which acts as significant support around $2,200, according to crypto trader Inmortal. To gain more upward momentum, Ether's price needs to stay above this key long-term support level. CoinGlass data indicates that a potential decline below $2,200 could trigger over $1 billion worth of leveraged short liquidations across all exchanges.
Ether price could also gain momentum as Bitcoin enters the parabolic phase of the bull cycle. Based on historical chart patterns and Bitcoin's average monthly returns for the fourth quarter, some analysts predict a three-month Bitcoin rally to $92,000, starting in October. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
