Ethereum is mirroring past patterns, indicating a possible downside. More than 73% of ETH whales are still holding positions.
Ethereum (ETH) is mirroring historical market patterns as the end of 2024 approaches, with traders closely monitoring potential price declines.
In 2016, ETH experienced significant declines in April, August, and December.
This year, cryptocurrencies have already experienced declines in April and August, and analysts are speculating that a similar decline could occur before the end of the year, possibly in December.
The pattern suggests a decline, but the key level to watch is $2,800. If Ethereum is able to break out and move above this, a deeper decline could be avoided.
Source: TradingView
However, if it fails to rise towards the $2,800 level, ETH could test the $2,300 level and then the $2,000 level by the end of the year.
ETH/BTC pair cannot exceed 50-day SMA
Another important factor is the inability of the ETH/BTC pair to exceed the 50-day simple moving average (SMA).
In previous cycles, when ETH/BTC broke above this SMA, it was followed by a strong bullish move. This hasn’t happened yet, suggesting that there may not be a minimum set.
Historical patterns support the idea that traders are often eager to make a bullish reversal without waiting for confirmation.
Bearish pressure on Ethereum is currently increasing due to competition from other platforms such as Solana and challenges inherent in the ecosystem.
Based on current price trends, Ethereum is likely to fall further in the future.
Source: TradingView
Further declines are likely, so traders looking to take advantage of this may consider taking short positions.
At the same time, the Ethereum Foundation continues to take profits, with the recent sale of 100 ETH contributing to the bear market.
whales stay for a long time
Despite these similarities, Ethereum is fundamentally different since 2016, having undergone major changes such as Merge and the 4844 upgrade.
Despite the continuing downward trend, there has been little change in whale activity.
According to Binance data, 73.14% of accounts still hold long Ethereum positions, reflecting confidence in its long-term prospects.
While the near-term outlook may be bearish, these large holders suggest there is still faith in the economic recovery.
Once prices stabilize and both ETH/USDT and ETH/BTC establish bottoms, traders may find strong long-term buying opportunities.
Source: Hyblock Capital
Ethereum could see another drop before the end of 2024, but the long-term outlook remains optimistic.
Read Ethereum (ETH) price prediction for 2024-2025
Traders will need to remain cautious in the short term, but a potential recovery presents a promising opportunity for those looking to go long once the bottom is confirmed.
The price trend of ETH remains one of the most watched in the cryptocurrency space as this year comes to an end.
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