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03/09/24
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Ethereum’s Bearish Struggles: Can History Repeat Itself in 2024?
Ethereum has faced significant hurdles in recent months, with its price declining by 23% over the past 30 days. This downturn contradicts the expectations of many investors who anticipated a bullish trend following the introduction of Spot Ethereum ETFs. Currently, Ethereum is navigating a bearish trajectory that has left traders concerned about the future performance of the cryptocurrency.
An analysis of Ethereum’s historical price movements reveals that the current trend may be reflective of patterns seen in 2016. Data suggests that Ethereum’s price action in 2024 closely resembles that of 2016 when examining monthly candlestick charts. This resemblance became evident after August 2024 ended with a bearish closure, mirroring the same outcome from August 2016. The consistency of this pattern throughout the year, beginning in January, indicates that Ethereum has been aligning with 2016 trends for eight consecutive months.
Should this pattern hold, predictions indicate that September could see a bullish monthly close, followed by three bearish months from October to December. The past performance of Ethereum in 2016 saw it achieve an unprecedented rally, and if similar trajectories follow, investors might anticipate a notable price increase after December 2024, potentially surpassing previous all-time highs.
Currently, Ethereum’s price rests at $2,521, reflecting a 5.85% decrease over the past week, according to CoinMarketCap data. While the bearish momentum could linger, the cryptocurrency is at a critical support level, just above $2,400, which corresponds to the 0.382 Fibonacci retracement level. A rebound from this crucial level could indicate a shift toward an upward trend. If Ethereum manages to break through and close above the monthly open by the end of September, there remains a possibility of reaching prices of $3,000 to $5,000 in the future.
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