Ethereum, the second-biggest cryptocurrency, is experiencing heightened attention as analysts predict that its price could soon surpass the $2,100 mark. Observing current price movements, a number of market experts have identified patterns that suggest an upward trajectory is imminent.
Short-Term Signs Point Upward
One notable analyst, Crypto Patel, expressed his views on the social media platform X, highlighting a promising setup on the Ethereum chart. Patel indicated that Ethereum had recently executed a strong upward move, altering the market’s structural dynamics. This shift occurred after the price reacted positively to a previously identified level, which has become a compelling point for buyers.
“#Ethereum Prints Bullish Displacement – Swing High Liquidity in Sight $ETH Price respecting bullish POI with clear displacement on tap. Currently testing mitigation block post-retest. Anticipating bounce to sweep swing high liquidity at $2128.12,” Patel tweeted.
Currently, Ethereum’s price is rebounding from a critical area around $2,064, known in trading circles as a mitigation block. This region is often characterized by strong buying interest from significant investors. It’s believed that these players utilize this area to adjust their orders in alignment with their market strategies before proceeding to push the price in their desired direction.
Patel suggests that entering trades in the upper segment of the mitigation block aligns with the typical behavior of such major players.
Patel’s indicated target price is $2,128, which corresponds to a swing high liquidity zone. These zones typically accumulate numerous stop-loss orders and pending buy orders, creating a catalyst for potentially swift price movements. If Ethereum reaches this area, it may trigger these orders, resulting in a sharp move upwards that could allow investors to realize profits before any possible reversal.
To mitigate risks, Patel has set a stop-loss at $2,027, just beneath the mitigation block, providing a safeguard against potential losses if the market does not move as anticipated.
Long-Term Pattern Looks Familiar
In addition to Patel’s assessments, another analyst, TimeFreedomROB, provided insights by comparing Ethereum’s present weekly price structure to events during the years of 2018 to 2020. His analysis reveals Ethereum breaking below an ascending triangle pattern, reminiscent of a previous dip below a descending triangle before a subsequent recovery in 2020. During that period, Ethereum’s price surged from under $100 to nearly $4,800.
“Currently, Ethereum is showing a similar break below support as observed in the last cycle. Will the price recover rapidly like last time?” TimeFreedomROB tweeted.
As it stands, Ethereum is trading close to $2,060 after dipping below the $2,300 threshold and testing a lower trendline around $1,800. This zone also coincides with historical demand levels, indicating potential support.
TimeFreedomROB’s chart suggests that the current dip may be the final shakeout before a substantial upwards movement, mirroring past trends. The region between $1,800 and $2,000 has historically served as robust support. For Ethereum to reaffirm an upward trend on the weekly chart, it must reclaim the $2,200 to $2,400 range.
At present, Ethereum is trading at approximately $2,064, marking a 6% gain over the last week. Its total market capitalization stands at $250 billion, with $11.71 billion worth of Ethereum traded in the last 24 hours.
While these analysts provide intriguing scenarios based on Ethereum’s historical price behaviors, it is crucial to acknowledge the inherent volatility and unpredictability of the cryptocurrency market.
Featured image from Gemini Imagen, chart from TradingView
