Ethereum (ETH) price is stuck in a consolidation phase, trading between $2,700 and $2,340 with no clear signs of a breakout. However, there are also optimists.
Despite Ethereum’s recent decline below the uptrend line, the historical pattern points to the possibility of a future rally. If ETH is able to hold key support levels, a bullish breakout could be just around the corner.
Ethereum: history repeats itself
A CryptoBullet analyst recently noted that the ETH/BTC chart may be forming a bottom reminiscent of the late 2016 pattern. Ethereum then grew by 2,738% over the following months. While such a move is unlikely in today’s market, the formation is encouraging for investors.
However, ETH’s 2,738% rally in the current environment would mean a breakout above $66,000, which is unrealistic. However, even a portion of such a rally could generate significant profits for investors. If ETH/BTC successfully bottoms, it could set the stage for sustained gains in the coming months, supported by strong market sentiment.
Ethereum’s macro momentum also indicates upside potential. The daily volume of profitable transactions on the network consistently exceeds the volume of unprofitable transactions. This demonstrates the underlying strength of Ethereum. A significant portion of ETH holders are in profit, which could support a bullish breakout from the current consolidation.
An increase in the volume of profitable trades usually indicates bullish sentiment. This state of affairs can strengthen price stability, especially if traders expect further growth. Positive momentum could help the price break out of the current range.
ETH Forecast: Short-Term Goals
To break out of consolidation, it is critical for price to turn the $2,700 level into support. Reaching this level will confirm a rebound from $2,546 and help ETH maintain the uptrend line drawn from the September levels. A consolidation above these support levels will mean that Ethereum is strengthening.
If ETH successfully turns $2,700 into support, the next target would be $3,000. This is a realistic forecast compared to the more speculative gains seen in the past. Reaching $3,000 could spur new buying and extend the rally.
However, this bullish scenario could be reversed if the asset breaks through uptrend support and falls to $2,344. Such a decline would add to the bearish pressure and cast doubt on Ethereum’s bullish near-term outlook.
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Source: Cryptocurrency
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