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Ethereum (ETH) saw a more than 10% correction from New Year’s highs amid the market retracement, recently falling below $3,300 support. Despite the ongoing pullback, some analysts remain optimistic about ETH’s Q1 performance, suggesting new highs are imminent.
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Ethereum forming a bullish pattern
Ethereum destroyed its New Year’s gains today after falling below $3,320. Following the market retracement, the second-largest cryptocurrency by market capitalization saw a 14% decline from its Monday high of $3,744 to fall below the $3,300 support.
During the rally earlier this year, ETH price recovered 20% from the correction lows, returning to pre-retracement levels for the first time in almost three weeks. However, the market pullback, which saw Bitcoin fall 7.2% in 24 hours, propelled Ethereum to the $3,210 level on Thursday morning. The $3,200-$3,300 price range served as a key support zone for ETH throughout December.
After its recent performance, several analysts have suggested that the cryptocurrency is forming a significant reversal trend, which could propel the ETH price to new highs. On Wednesday, crypto analyst Rekt Capital noted that Ethereum was forming an inverse head-and-shoulders pattern over several months during the million period.
For the analyst, “it is clear” that the $3,650-$3,760 area is “a major resistance region, developing just below $4,000, with price forming this resistance at a lower high that could act as a neck line for the model”.
He said “its end point is at the psychological $3,000 level,” adding that “any pullback near the $3,000 level could see Ethereum develop a right shoulder.”
Similarly, as Ethereum fell to the bottom of the key $3,200 range, Miky Bull highlighted the same pattern, hinting that the $7,000 target is “looming.” According to the chart, ETH price could see an 87.53% increase near the $7,400-$7,500 price range, based on a bullish setup.
More “major retracements” for ETH?
Cryptocurrency analyst Ali Martinez also shared his views on the uptrend, saying that a drop to $2,900 “will be very bullish” for ETH. The analyst argued that this would create “a great opportunity to buy the dips to then target $7,000!” »
However, it is worth noting that the uptrend would be invalidated if Ethereum fell below $2,800, where the left shoulder formed.
Meanwhile, another market watcher shared the similarities between ETH’s performance in early 2024 and 2025, pointing out that the king of Altcoins fell below its annual high in January 2024 before rising again the following month.
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He said: “I think it’s really important not to confuse a few days of red price action with high time bias. I firmly believe this is an annual shake-up opened up after some overenthusiastic participants invested too much money, too soon. I am very optimistic for the first half of 2025.”
Crypto analyst Wolf believes there will likely be “little to no downside,” suggesting ETH could retrace another 4-7% maximum before targeting all-time highs (ATH).
At the time of writing, ETH is trading at $3,255, down 2.15% on the daily time frame.
Featured image from Unsplash.com, chart from TradingView.com
