Ethereum Price Prediction: The cryptocurrency market has seen a surge in volatility as digital assets Bitcoin and Ethereum entered a minor correction. The pullback has seen the ETH price plummet by 7.4% from its recent high of $2,400 to $2,238. However, this retracement is within the confines of an ascending channel pattern and the recovery is expected to remain intact.
Channel pattern suggests a move above $2,500 next
Channel pattern leads the current ETH price recovery trend
Until the lower trendline of the pattern remains intact, token holders can enjoy a bull rally
Ethereum’s intraday trading volume was $10.2 billion, with a gain of 78%.
Ethereum Price Prediction | Trading View Chart
Ethereum (ETH) has shown a strong recovery since mid-October, first rebounding from the $1522 support level. This rebound is best understood through the lens of a channel pattern, which features two ascending trendlines that have been providing dynamic resistance and support for price action.
Ethereum price marked its latest recovery from the pattern’s lower trendline on Dec. 13, as evidenced by the formation of a Morning Star candle. The reversal has pushed the price to the current $2,243 level, marking the start of a new bull cycle within the confines of the channel pattern.
If ETH price continues to follow the trajectory set by this channel pattern, we could see a 12-15% surge, potentially reaching the upper trendline in the $2,500 to $2,600 area. As long as both trendlines remain intact, Ethereum is likely to maintain its upward trajectory, albeit with minor pullbacks along the way.
However, a breakout above the channel resistance could significantly strengthen buying momentum, potentially leading to a larger recovery. In this case, the initial target could be set at $2,730, with further gains to $3,260 likely, marking a key milestone in Ethereum’s bullish journey.
Can ETH price fall back to $2,000?
While the current market outlook for Ethereum prices seems strongly bullish, the ascending channel pattern in a strong rally usually leads to a decisive breakdown from the lower trendline. Such a breakdown could intensify selling pressure and trigger a sharp correction in ETH prices. Therefore, under the influence of this pattern, Ethereum could revisit $2,000 again.
Bollinger Bands: Although the current pullback is at the upper border of the Bollinger Bands indicator, it still shows active recovery momentum.
Relative Strength Index: The lower highs on the daily RSI slope reflect the weakening power of buyers in the market.
