Ethereum (ETH) has recently faced a major decline, which has plunged the asset into the red. Over the past week, Ethereum’s value has fallen by 9.2%, reflecting overall market weakness.
However, the last 24 hours have brought a slight change in momentum, with ETH recording a 3.2% price increase. While this increase is not enough to erase the losses of the previous week, it could signal the beginning of a recovery phase.
Is Ethereum at the end of its correction?
According to the latest analysis by renowned crypto analyst Alex Clay on X, Ethereum could be gradually recovering as its recent bear market could be ending.
He highlighted that if ETH can maintain its consolidation above key technical zones, particularly the 200-day moving average (MA) and the 200-day exponential moving average (EMA), it would provide a solid foundation for an upward rally.
A significant price break above the $2,500 mark could confirm that the correction is over and the asset is ready to rally. Moreover, while Clay was previously optimistic about Ethereum reaching a much higher price target, he has revised his expectations based on recent market conditions.
#ETH/USD
In my opinion, we are at the end of the $ETH correction
Looking for consolidation above key area + 200 MA and 200 EMA confluence
A break above $2,500 would serve as confirmation of the start of the rally.
#Ethereum turned out to be a heavyweight, so the $10,000 goal is pretty… pic.twitter.com/jjGPPUHWE3
— Alex Clay (@cryptclay) September 9, 2024
Clay noted, “Ethereum has proven to be a heavy asset, so the $10,000 target is more of a dream than a reality, so I’ve changed my mind.” For now, the analyst has set more realistic targets, with a medium-term target of $4,000 and long-term targets ranging from a conservative $6,255 to an optimistic $7,942.
Other analysts view the falling wedge pattern as a key indicator
In addition to Clay’s analysis, Ethereum’s technical chart has been the focus of several prominent analysts, including Anup Dhungana and Captain Faibik, who recently identified the potential for a bullish breakout for ETH.
For example, Dhungana’s ETH/BTC chart analysis suggests that a bounce from key support levels and a breakout of the falling wedge pattern could significantly boost Ethereum’s price.
To put things into context, falling wedges are generally considered bullish reversal patterns in technical analysis, and confirmation of a breakout could signal an exponential uptrend.
Similarly, Captain Faibik echoed this sentiment, sharing an image of the altcoin market chart that also displayed a falling wedge formation.
Faibik predicted that altcoins could break out of the wedge pattern soon, potentially pushing major altcoins, including ETH, towards a recovery in Q4 2024.
He advised investors to remain patient, accumulate altcoins and prepare for a rebound that could see prices return to their March 2024 highs.
Featured image of DALL-E, chart by TradingView
