Ethereum Price Drops 2.4% to $3,577 Amid Analyst Optimism for Rally
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has dropped 2.4% in the past 24 hours, trading at $3,577. This decline represents a 26.8% decrease from its all-time high of $4,878 recorded in November 2021. Despite the price drop, the network's daily trading volume remains strong at $42.4 billion, an increase from late last month when volumes dipped below $35 billion.
Chart Patterns Indicate Potential Rally
Although Ethereum's current price trajectory appears negative, analysts have expressed optimism regarding its long-term potential. Various technical indicators and chart patterns suggest a possible significant rally for the asset in the coming months.
CryptoBullet, a well-known analyst, highlighted a "cup and handle" formation on Ethereum's monthly price chart, suggesting a surge to new highs, potentially reaching $6,675. He stated, "Did you guys see the $ETH monthly chart? Bullish AF. This month, we’re going to SMASH through the resistance. Cup&Handle Target – $6675."
Venture Founder, another prominent analyst, projected an ambitious target of $15,937 by May 2025, noting that Ethereum has been in a "triangular consolidation phase" for three years, reminiscent of its behavior from 2016 to 2017. The analyst indicated that Ethereum could break out of this consolidation into a new price paradigm.
3 years of triangle consolidation for #Ethereum and $ETH could enter a new paradigm which it consolidated for the past 7 years.
Base Case: Ethereum likely to repeat this impulsive breakout it did between 2016-2017 to shoot to new ATH.
Price Target: $15,937 by May 2025 pic.twitter.com/3iYZTjG6Lv— venturefounder (@venturefounder) December 2, 2024
Symmetrical Triangle Pattern Sparks Interest
Clifton Fx, another respected analyst, focused on Ethereum’s symmetrical triangle formation observed in the weekly timeframe. He indicated that an upside breakout from this formation could propel Ethereum's price to as high as $13,000.
This perspective aligns with the broader sentiment among analysts who believe that Ethereum's technical indicators are setting the stage for a significant price rally.
$ETH (Update)
Symmetrical triangle formation in weekly timeframe…
In case of Upside breakout the next stop will be 13k #ETH #Ethereum #Crypto pic.twitter.com/DTNlCiNnZx— Clifton Fx (@clifton_ideas) November 29, 2024
Featured image created with DALL-E, Chart from TradingView.