Road To $5,000: Ethereum Maintains Similarities With 2016 Price Movements
September 02 2024 - 11:30PM
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The Ethereum price action has significantly underperformed traders’
expectations over the past few months. Ethereum is currently
trapped in a bearish trend, with its price now down by 23% over a
30-day period. This downturn contrasts sharply with the hopes of
many ETH investors who have been anticipating a bullish surge
following the launch of Spot Ethereum ETFs. However, technical
analysis suggests that Ethereum’s recent performance is not unusual
for the cryptocurrency, as it appears to be mirroring a similar
pattern observed in 2016. Ethereum Maintains Similarities With 2016
Price Movements Despite the price concerns, a deeper look into
Ethereum’s historical price movements suggests that the current
situation might not be as unfamiliar as it seems. According to an
ongoing analysis by popular crypto analyst Benjamin Cowen,
Ethereum’s price action in 2024 closely mirrors its performance in
2016 when viewed on the monthly candlestick chart. This pattern of
repetition became even more apparent after August 2024 concluded
with Ethereum closing on a bearish candle, mirroring the same
outcome in August 2016. Related Reading: Dogecoin Eyes Massive Bull
Surge As Metrics Turn Green Isolated, this would’ve probably not
meant anything. However, as Cowen has highlighted, this pattern has
been consistent throughout 2024, dating back to January.
Interestingly, Ethereum has closed monthly candlesticks the same
way as in 2016 for eight months in a row. As such, this could give
an idea of how Ethereum could continue to play out for the rest of
the year. #ETH / #USD monthly candles continue to track 2016
perfectly. If it continues to play out, it would suggest #ETH is
green in September, and then red Oct-Dec. Then in 2025 #ETH turns
green for a while pic.twitter.com/G8WtDwQlWY — Benjamin Cowen
(@intocryptoverse) August 21, 2024 Back in 2016, Ethereum
eventually went on a massive 19,000% rally, which saw it reach
$1,590 for the first time. If this continues to play out like in
2016, investors can look towards a green monthly close for Ethereum
in September and then three consecutive bearish months from October
to December. If this price action repetition continues after
December 2024, Ethereum will eventually go on a notable price rally
above its current all-time high. This would push fervent Ethereum
bulls into the much-needed profitability they’ve been
anticipating. Road To $5,000? At the time of writing,
Ethereum is trading at $2,445, a decline of 10.85% over the past
seven days and 23% over the past 30 days. If the current trend
continues to mirror the 2016 pattern, Ethereum’s bearish momentum
might persist throughout the remainder of the year. However, not
all hope is lost for Ethereum bulls, as the cryptocurrency is
currently hovering around a critical support level that could
trigger a rebound upwards. Related Reading: Crypto Market In
Trouble As Analyst Predicts $1 Trillion Crash Ethereum’s price is
at a crucial support level, specifically at the 0.382 Fibonacci
retracement level, just above $2,400. A significant bounce from
this level could signal the start of an upward trend, leading to a
close above its monthly open by the end of September. An ETH surge
above $3,000 into $4,000, and subsequently, $5,000 is still in the
books. Featured image created with Dall.E, chart from
Tradingview.com
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