Ethereum appears positioned to break free from a months-long bearish pattern, according to multiple cryptocurrency analysts monitoring the second-largest digital asset by market capitalization. The cryptocurrency traded at $2,029 as of press time, marking a 7.8% increase over the previous 24 hours after enduring sustained selling pressure since December 2024.
Crypto analyst CryptoGoos suggested in a recent social media post that Ethereum may be concluding what traders call a "bear trap" – a false signal that tricks investors into anticipating continued price drops before an unexpected reversal occurs. The analyst shared a weekly price chart illustrating how ETH might be approaching a significant trend reversal after months of downward movement, potentially targeting its recent range high of $4,000 and eventually aiming for a new all-time high of $10,000.
"If price can generate a strong enough reaction here, then ETH will be able to reclaim the $2196-$3900 Macro Range," stated crypto investor Rekt Capital, who emphasized that Ethereum is currently trading within a "historical demand area." The investor further noted that if ETH reclaims this range before the March monthly close, "this entire sub-$2200 downside would end up as a downside wick."
Merlijn The Trader, another market analyst, reinforced this outlook by highlighting similarities between Ethereum's current price action and patterns observed in 2020. He specifically noted that the previous occurrence of this market setup resulted in "panic turned into a historic rally."
Technical indicators appear to support these bullish projections. Ethereum's weekly Relative Strength Index recently reached a multi-year low, often considered a precursor to a trend reversal by technical analysts. Meanwhile, crypto commentator Ted shared analysis suggesting ETH has broken out of its short-term accumulation phase that began when prices dropped from $3,000 to $1,800.
Ted added that sustained price action above the $2,000 threshold could catalyze a significant upward movement for the digital asset.
The shifting sentiment has prompted some investors to adjust their portfolios accordingly. Analyst Daan Crypto Trades revealed he recently converted a portion of his long-term Bitcoin holdings into Ethereum for the "first time in years," citing the current ETH/BTC trading pair as offering an attractive risk-to-reward ratio.
Despite these positive signals, some cautionary factors remain. Increasing Ethereum reserves on cryptocurrency exchanges could potentially limit bullish momentum if substantial numbers of investors decide to sell their holdings.
The cryptocurrency has traded in the low $2,000 range after experiencing strong selling pressure that drove prices below previous support levels. This extended period of downward movement followed months of market uncertainty that has tested investor confidence across the digital asset sector.
Ethereum's ability to maintain its position above key technical levels in coming weeks will likely determine whether analysts' projections of a significant trend reversal materialize or if further consolidation is needed before sustainable upward momentum can develop.