Ethereum price is stuck in a consolidation phase, trading between $2,700 and $2,340 with no clear breakout in sight.
Despite recent dips below its trendline, a historical pattern suggests the possibility of a future bullish move for Ethereum. If the asset can hold key support levels, a breakout could be on the horizon.
Ethereum could repeat all-time high
Analyst CryptoBullet recently highlighted that the ETH/BTC chart may be forming a bottom, resembling a pattern seen in late 2016. At that time, Ethereum saw a 2,738% rally in the following months. While a similar spike is unlikely in the current market, the formation is encouraging for investors.
However, expecting a 2,738% increase for ETH under current conditions would imply a rally above $66,000, which is unrealistic. Still, even a fraction of this all-time high could yield significant gains. If Ethereum’s ETH/BTC pair successfully establishes a bottom, it could pave the way for a sustained rally in the coming months, supported by strong market sentiment.
Read more: Ethereum ETFs – Understand what they are and how they work
ETH/BTC bottom pattern. Source: CryptoBullet
Ethereum’s macro momentum also points to bullish potential. Daily on-chain trading volume in profit has consistently outpaced losing transactions, signaling underlying strength in Ethereum’s market conditions. This suggests that a large portion of ETH holders are in profit, which could support a breakout from the ongoing consolidation.
Higher volumes on profitable trades generally indicate bullish sentiment. When more trades generate profits, it can reinforce Ethereum’s price resilience, especially as traders anticipate further gains. This momentum positions Ethereum well for an eventual breakout from its current range, as demand could increase if the asset approaches its upper bounds.
Ethereum transaction volume in profit/loss. Source: Santiment
ETH Price Prediction: Short-Term Targets
For Ethereum’s consolidation to be broken, flipping $2,700 into support will be crucial. Reaching this level would confirm a bounce from $2,546, helping ETH hold onto its rising trendline established in September. Holding above these support levels would signal a continuation of Ethereum’s strength.
Furthermore, if ETH successfully flips $2,700 into a support level, the next target would be $3,000. This is a realistic prospect compared to the more speculative gains seen in the past. Reaching $3,000 could encourage further buying, potentially extending Ethereum’s rally.
Read more: Best Ethereum Wallets in November 2024
Ethereum Price Analysis. Source: TradingView
However, this bullish scenario could be negated if it loses support at the uptrend line and drops to $2,344. Such a decline would increase bearish pressure, challenging Ethereum’s ability to regain upward momentum in the near term.
The article Ethereum Could Repeat 2,738% High of 2016, According to Analyst appeared first on BeInCrypto Brazil.
