Ethereum (ETH) has been experiencing a massive sell-off in recent days, which has put the asset in deep losses. Over the past week, Ethereum’s value has fallen by 9.2%, fully reflecting the weakness of the overall market.
However, the situation has changed slightly over the past 24 hours, with ETH prices up 3.2%. While this gain is not enough to erase the losses of the previous week, it may signal the beginning of a recovery phase.
Is Ethereum at the end of its correction?
According to the latest analysis by well-known crypto analyst Alex Clay on the X platform, Ethereum may be gradually on the road to recovery as its recent bear market may be coming to an end. He emphasized that if ETH can maintain consolidation above key technical areas, especially above the 200-day moving average (MA) and 200-day exponential moving average (EMA), then this will lay a solid foundation for the rise.
A significant move above the $2,500 mark could mean that the correction is over and the asset is ready for a recovery. In addition, while Clay was previously optimistic about Ethereum reaching higher price targets, he has revised his expectations in light of recent market conditions.
ETH/USD
I think we are at the end of the $ETH correction 💁♂️
Look for a pivot area and some consolidation above the 200MA and 200EMA confluence.
Breaking $2500 would confirm the start of a rally 🚀#Ethereumhas become a heavy asset so the $10k target was more of a dream than a reality so I changed my mind.
— Alex Clay (@cryptclay) September 9, 2024
“Ethereum has become a heavy asset, so the $10,000 target currently looks more like a far-fetched dream, so I adjusted my view,” Clay noted. Currently, the analyst has set a more realistic target of $4,000 in the medium term, while long-term targets range from a conservative $6,255 to an optimistic $7,942.
$Other analysts see the falling wedge pattern as a key indicator
In addition to Clay’s analysis, Ethereum’s technical charts are also being closely watched by several prominent analysts, including Anup Dengana and “Captain” Fibik, who recently spotted the potential for a bullish breakout in ETH.
For example, Dungarner's analysis of the ETH/BTC chart suggests that a bounce off key support levels and a breakout of the falling wedge pattern could significantly boost Ethereum's price.
For context, a falling wedge is often viewed as a bullish reversal pattern in technical analysis, while a confirmed breakout could signal an exponential uptrend.
Similarly, “Captain” Febik expressed the same sentiment, sharing a chart of the altcoin market that also shows a falling wedge pattern.
Febik predicts that altcoins may soon break out of the wedge pattern and could drive a recovery for major altcoins, including ETH, in the fourth quarter of 2024.
He advises investors to remain patient, accumulate altcoins, and prepare for a rebound that could see prices return to March 2024 highs.
