Recently, Ethereum’s price action saw ETH reaching a new low of $2,150 on September 6, raising concerns about a more severe drop towards the $2,000 price level. Although these concerns were eased with a subsequent bounce to $2,460 on September 13, Ethereum remains largely in a downtrend, with a triple-bottom price formation now shaping up.
Interestingly, this triple bottom formation is not new for Ethereum. According to technical analysis, the current price action seems to mirror a similar pattern from mid-2021. A crypto analyst going by the name CryptoBullet on the social media platform X suggests that Ethereum is forming a triple bottom price formation on the 1D candlestick time frame. While the third bottom has yet to be fully realized, the analyst highlights a similar pattern that took place between June and August 2021.
During those three months, Ethereum’s price fluctuated to create three distinct lows just above the $1,675 mark. After the third low was established, Ethereum experienced a significant bullish rally, propelling it to new heights and establishing its current all-time high. This upward movement became even more pronounced after a fractal pattern emerged in August 2021, signaling a strong momentum shift.
Recent market dynamics have prompted Ethereum to establish two bottoms around $2,150 in August and September. A recent rejection at the $2,450 resistance level has pushed Ethereum into decline, prompting CryptoBullet to highlight the possibility of a third low in October, thereby completing the triple bottom formation.
Price formations in cryptocurrency markets are known to repeat over time, often following patterns that can help traders anticipate future movements. While no two market conditions are exactly the same, studying past price movements provides valuable insights into potential future trends. A similar replay of the 2021 price action could result in a notable surge for Ethereum in Q4 2024, with the analyst envisioning a rally towards the $3,700 price level.
As of this writing, Ethereum is trading at $2,320 and continues to exhibit a weak short-term outlook. If Ethereum fails to clear the $2,340 resistance, it could start another decline towards $2,150.
This weak performance is even more pronounced compared to Bitcoin. Ethereum/Bitcoin is now at its lowest level since April 2021, marking a staggering 41-month low. This lackluster action has been exacerbated by selloffs from a few large holders, including Ethereum co-founder Vitalik Buterin, who recently came under scrutiny for selling $2.2 million worth of Ethereum.
