rewrite this title Ethereum Headed For $1,250 Or Ready For A Reversal? Analysts Weigh In | Bitcoinist.com

According to a recent post on X by crypto analyst Ali Martinez, Ethereum (ETH) may be heading to $1,250 as it risks breaking down from a parallel channel. However, other analysts suggest a trend reversal could be on the horizon for the second-largest cryptocurrency by market cap.

Is Ethereum Heading Lower?

Ethereum has been stuck in a persistent downtrend over the past three months, shedding more than 50% of its market value. The digital asset has plunged from $4,061 on December 16 to just above $1,900 at the time of writing, marking a steep 50% decline.

Digital assets analyst Martinez warns there may be further downside for ETH, especially after it dropped below $2,200 on the daily chart, breaking down from a parallel channel. Martinez explained that this breakdown could push ETH’s price as low as $1,250.

Fellow crypto analyst Daan Crypto Trades offered a more cautiously optimistic perspective. The analyst highlighted that ETH has been consolidating after the recent crypto market sell-off and has formed a falling wedge pattern on the hourly chart – a pattern often associated with a potential local trend reversal. They added:

But for that to occur I’d want to see the breakout and hold above the white zone. If it can do that, we can start looking for tests into the $2K+ region again.

Daan also pointed to the declining ETH/Bitcoin (BTC) trading pair. While it has shown some strength over the past few days, the analyst noted that this isn’t enough to signal a relief rally. Data from CoinGecko reveals that ETH has fallen nearly 60% against BTC over the last year.

Experts Offer Hope For ETH

Crypto trader Merlijn The Trader drew parallels between ETH’s current price action and its behavior during 2019-2020, suggesting ETH might be on the verge of regaining bullish momentum. However, he emphasized that ETH must first clear key resistance at $2,260.

Similarly, crypto analyst Ted brought out the similarities between Ethereum and BTC’s price action from 2019. In an X post, he said:

What if $4K ETH is like $14K BTC in 2019? What if the Ethereum major rally hasn’t even started? Looking at the BTC 2019-21 fractal, it makes me wonder if ETH’s previous rallies were just the beginning.

However, Ted also cautioned that ETH might first dip to the $1,400-$1,600 range before any significant trend reversal begins. His analysis aligns with a recent report predicting that ETH could stage a swift recovery to $3,000, driven by a potential short squeeze.

On a more positive note, ETH might be approaching a strong recovery phase after entering a crucial oversold zone. At press time, ETH is trading at $1,933, up 5.2% in the past 24 hours.

Featured Image from Unsplash.com, Charts from X and TradingView.com

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