Ethereum
Ethereum dipped below $3,000 for the initial moment since November, reaching $2,920 before rebounding to the $3,100-$3,200 sector.
The vital support zone between $3,066-$3,160 was breached, where 4.12 million wallets possessed 4.9 million ETH.
The recent price movements echo the pattern observed in 2021 that culminated in ETH’s historic peak.
A multi-month inverse head and shoulders pattern is in the making, with some analysts projecting a target of $7,000.
Historical trends indicate that ETH usually begins the year with negative returns but transitions into a positive phase as February nears.
The valuation of Ethereum experienced significant fluctuations this week, falling below $3,000 for the first time since November prior to recovering. The second largest cryptocurrency by market value dropped to $2,920 on Monday, marking its lowest value in two months.
During the weekend, Ethereum traded within a range of $3,200 to $3,340 as it bounced back from previous lows. Nevertheless, this stability was short-lived as selling momentum increased at the week’s outset.
Market statistics highlighted a critical support zone between $3,066 and $3,160, where around 4.12 million wallets held 4.9 million ETH. This support benchmark, which had previously held firm during December’s corrections, yielded as bears forced prices to decline.
The decline represented a 12% drop from the highs of the weekend, pushing ETH to reassess its post-election breakout threshold near $2,900. The market reacted swiftly to this price point, with buyers entering to lift the price by 9% into the $3,100-$3,200 bracket.
Technical evaluation from crypto market commentator Ali Martinez emphasized resistance zones between $3,360 and $3,450, where 4.37 million wallets have gathered 6.47 million ETH. These valuation points may pose hurdles for upcoming upward movements.
The most essential resistance point for #Ethereum $ETH is situated between $3,360 and $3,450, while key support resides between $3,066 and $3,160. pic.twitter.com/gE0vEW35vb
— Ali (@ali_charts) January 13, 2025
Numerous traders have observed the emergence of a multi-month inverse head and shoulders setup on Ethereum’s price chart. The left shoulder of this pattern formed around the $2,800 mark, with analyst Rekt Capital proposing that pullbacks near $3,000 could give rise to the right shoulder.
Trader Miky Bull perceives the recent price movements as potentially establishing a “perfect scenario for a major turnaround.” According to Bull’s assessment, if the inverse head and shoulders pattern unfolds as expected, it could aim for the $7,000 price level.
Furthering the technical analysis, cryptocurrency analyst Crypto Bullet drew comparisons between current market conditions and Ethereum’s trends in 2021. During that timeframe, ETH exhibited a Double Top pattern prior to falling below the $3,100 support.
$ETH Worst Case Scenario pic.twitter.com/ByDGEah5dk
— CryptoBullet (@CryptoBullet1) January 13, 2025
The 2021 scenario witnessed Ethereum consolidating for a fortnight following the loss of this support level before reclaiming it and advancing to achieve new all-time highs. Some analysts suggest that the current price movements reflect this historical pattern.
When examining seasonal trends, data from CoinGlass indicates that Ethereum typically encounters negative weekly returns at the onset of January. However, as February approaches, the cryptocurrency often transitions into a phase of positive performance lasting up to six weeks.
Trader Daan Crypto Traders highlighted the necessity of reviewing quarterly returns for a broader perspective on seasonal trends, noting that “the percentages ETH generates in its initial weeks of the year are quite astonishing.”
The cryptocurrency currently confronts resistance between $3,360 and $3,450, a range where notable trading activity has transpired. This price interval may be critical in determining Ethereum’s short-term trajectory.
Monday’s decline to $2,920 tested the resolve of holders, yet the rapid recovery indicates substantial buying interest at reduced levels. The rebound from this support level resulted in a 9% price surge within hours.
Transaction statistics reveal that 4.12 million wallets holding 4.9 million ETH were impacted when prices fell through the $3,066-$3,160 support range. This signifies a considerable fraction of Ethereum holders who may now find themselves in unfavorable positions.
As per the latest market data, Ethereum is trading at $3,230, reflecting a 3% rise over the past 24 hours. The price has stabilized above the pivotal $3,000 psychological threshold that was momentarily breached earlier in the week.
The recent price movements have led to the establishment of what traders recognize as a possible right shoulder within the broader inverse head and shoulders structure. This technical configuration, if realized, may prepare the ground for Ethereum’s subsequent major price movement.
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