Ethereum had a wild ride last Monday – a 30% drop in a single day! Market panic, fueled by trade war worries, was to blame. But things turned around quickly after some positive news on trade talks, sparking renewed hope among investors.
A Long-Term Bullish Outlook
Despite the recent volatility, a leading analyst, Jelle, points to a massive bullish pennant pattern forming since 2021. This suggests Ethereum is consolidating, building up for a big move. Jelle predicts a significant price rally once Ethereum breaks out of this pattern, potentially reaching new highs.
Ethereum’s Current Struggle
Right now, Ethereum is facing a tough time, struggling to break above $3,000. This is a key resistance level, and staying below it increases the chances of a further price drop. The inability to gain momentum above $3,000 has investors worried.
The Pennant’s Potential
However, Jelle’s analysis, shared on X, highlights the bullish pennant. He notes that Ethereum’s price has bounced off both the high and low points of the pattern, suggesting a breakout is near. A successful break above the pennant could easily push Ethereum past $4,000 and into uncharted territory.
Price Action and Key Levels
Currently trading around $2,820, Ethereum needs to reclaim $3,000. Breaking above $2,900 (a short-term resistance) would be a positive sign. Losing support at $2,800, however, could trigger a drop towards $2,500. Conversely, reclaiming the $3,000-$3,100 range could spark a rally towards $3,500 and beyond. The situation is definitely one to watch closely.
