Ethereum witnessed significant volatility last Monday, with prices plunging over 30% in less than 24 hours due to market panic triggered by U.S. trade war concerns. However, a swift recovery followed President Trump’s announcement of negotiations with Canada and Mexico to ease tariff worries. This recovery has sparked optimism among investors, who are now eagerly awaiting Ethereum’s next move.
Top analyst Jelle recently shared a technical analysis indicating that Ethereum is still within a bullish pennant pattern that has been forming since 2021. This long-term pattern suggests that ETH is consolidating, gearing up for a potential breakout. Once Ethereum breaks out of this pattern, a significant rally into price discovery territory is anticipated.
Despite the recent market turbulence, Ethereum remains a closely monitored asset by traders and analysts. While short-term price movements are unpredictable, the long-term bullish structure provides a solid foundation for Ethereum’s growth potential. Investors are now keeping an eye out for key technical signals that could confirm a breakout and push ETH to new all-time highs.
The current challenge for Ethereum is the struggle to surpass the crucial $3,000 mark, facing selling pressure and uncertainty in the market. Every day below $3,000 increases the likelihood of a deeper correction, with traders remaining cautious and sentiment weakening. However, Jelle’s analysis suggests that Ethereum is still within a bullish pennant, hinting at a potential breakout despite short-term uncertainties.
If Ethereum manages to break above this bullish structure, a move above $4,000 is expected, leading to a rally into uncharted price territory and potentially reaching new all-time highs. Although bears are currently in control, the long-term bullish formation indicates that Ethereum could be gearing up for a significant price movement in the months ahead.
In terms of price action, Ethereum is currently trading around $2,820, struggling to breach the $3,000 level. Failure to surpass $2,900 has turned this into a short-term supply zone, indicating weakening bullish momentum and ongoing market uncertainty. A break below $2,800 could result in a deeper correction towards $2,500, while reclaiming $3,000-$3,100 levels would signal renewed bullish momentum.
As Ethereum stands at a crucial juncture, traders and investors are closely monitoring key support and resistance levels to anticipate the next major move. With risk and opportunity intertwined, Ethereum’s price action in the coming days will be critical for determining its future trajectory.
Image source: Dall-E, chart source: TradingView.