Ethereum ready for new rally? Analyst sees striking pattern

The crypto market is at an important crossroads. While Bitcoin (BTC) is struggling with the support level around 80,000 dollars, the uncertainty around Ethereum (ETH) is also great. Nevertheless, Newsbit analyst Erik Juffermans sees interesting signals on the charts that could indicate a possible price recovery. The coming days will be crucial in this regard.

According to Juffermans, the zone around 2,400 dollars is especially important to keep an eye on. This level formed a solid resistance for a long time. However, after the recent rise to almost $2,800, the Ethereum price has fallen back to this zone.

According to the analyst, this is not an unusual movement. After a breakout, a price regularly returns to a previously broken resistance level to test it again.

Last weekend, ETH fell below the $2,400 mark on the daily chart. Nevertheless, Juffermans sees no reason to assume a further decline immediately. The price is still within the purple support zone on the chart below.

The next few days should show whether Ethereum manages to hold this support zone. According to Juffermans, the technical picture changes when the price drops convincingly below 2,300 dollars.

In that case, a further decline towards 2,000 dollars comes into view. Bitcoin also plays an important role in this. If the Bitcoin price falls further, according to the analyst, the chance that Ethereum will also lose ground increases.

Although Ethereum has lost the $2,400 mark, Juffermans sees a possible chance of recovery precisely in this price movement.

The analyst points to the first signs of a so-called bear trap. In addition, a price appears to be falling due to an important level of support, so that investors take further losses into account. Then the price turns up unexpectedly and the lost level is recaptured.

That scenario could now occur with Ethereum. Due to the drop below $2,400, many investors expect a further decline. According to Juffermans, if ETH manages to recapture this limit quickly, it can be a positive signal.

This positive scenario requires a convincing return above $2,400. This would allow Ethereum to reverse the recent downward outbreak.

If, on the other hand, the price falls below 2,300 dollars, then, according to Juffermans, the scenario of a bear trap lapses. A further decline towards $2,000 then becomes more likely.

According to Juffermans, the relationship between Ethereum and Bitcoin also shows an interesting development.

Since last month's peak, ETH has lost nearly fourteen percent of its value against BTC. Nevertheless, the price ratio has now reached an important technical level.

Juffermans sees that Ethereum has fallen back to an area where a horizontal and a diagonal support line meet after a previous outbreak.

In addition, the graph appears to form an inverted head and shoulder pattern. This pattern is often seen as a positive signal within technical analysis, as it can indicate a change from a falling to a rising trend.

According to Juffermans, this brings together various technical signals that may indicate a new strong period for Ethereum.

Whether it actually starts, however, depends to a large extent on Bitcoin. According to the analyst, if BTC manages to maintain its important support levels, it could pave the way for a new rise in Ethereum and other altcoins.