Analyst Predicts ETH/BTC Bottom in Q4 as Ethereum Faces Short-Term Weakness
These past days have been bullish for the cryptocurrency market, with prices hitting new levels. Ethereum ETH's price surged from $2,300 to almost breaking the $2,700 resistance level before pulling back.
Analysts predict Ethereum will experience short-term weakness through Q4 2024 before recovering in 2025. Market observers are watching closely to see Ethereum's next direction.
ETH/BTC Pair Nears Bottom, Ethereum Faces Decline in Q4Ethereum has caught the attention of analysts, particularly as its ETH/BTC pair moves toward a critical support zone. According to Benjamin Cowen, CEO of Into The Cryptoverse,the ETH/BTC ratio, now hovering between 0.03 and 0.04, is likely to bottom out this quarter.
He sees this level as a critical support zone and suggests the ratio would likely not fall below 0.03 even if it dips further.
If 0.038 is not the bottom, then 0.036 is likely the next stop. Worst case scenario is 0.03, but I highly doubt it goes that low," said Cowen.
Cowen noted in the X post that Ethereum's relationship with Bitcoin has been weakening in recent months, with ETH underperforming compared to BTC.
He pointed out that Ethereum has struggled to maintain momentum against Bitcoin despite earlier bullish predictions, especially in the current market cycle.
The ETH/BTC ratio saw similar declines in Q4 of 2016 and Q4 of 2019. During these periods, Ethereum showed temporary weakness but eventually recovered. Cowen believes this pattern could repeat, with Ethereum remaining weak for the rest of 2024 before rebounding in 2025.
He warned that now might not be the best time to panic sell, as the price is nearing a possible bottom.
Potential for Ethereum's Recovery in 2025If you were bullish on ETH/BTC at 0.08 but bearish on it at 0.038, then the market has completely tricked you," he added.
While Ethereum's short-term outlook may appear weak, some experts remain optimistic about its future. Market analyst Peter Brandt hasidentifieda potentially bullish pattern on Ethereum's price chart, hinting at a possible reversal in its downward trend.
Brandt pointed to an Inverse head-and-shoulders (H&S) bottom pattern forming, which could signal the start of an Ethereum bullish reversal.
The pattern started with the left shoulder forming in late July when Ethereum's price dropped to $2,330. The head of the pattern formed in September with a lower low at $2,253.
Recently, the right shoulder began to take shape in October as the price dipped but held above $2,330. This indicates that bearish momentum might be weakening.
However, Brandt noted that this pattern is incomplete without a breakout above the neckline, which is currently acting as resistance. If Ethereum can break through this level, it could confirm the pattern and trigger a significant price increase.
For now, Ethereum's short-term movement remains uncertain, but the potential for a strong recovery in 2025 remains a possibility.
Long-Term Outlook and Market SentimentThe long-term outlook for Ethereum, particularly going into 2025, remains bullish despite the current weakness.Analyst Ali Martinez offers his perspective on Ethereum's price movement. He focuses on Ethereum's pattern within an ascending price channel. According to the analyst, this channel has previously led to significant price surges.
Martinez highlighted that in July 2023, Ethereum surged by 130.77% after the channel's lower boundary.A similar price movement occurred earlier this year when ETH hit $4,150.
Based on this, Martinez expects Ethereum to rise to $6,000. However, this will depend on whether the price holds its support level at $2,300. While Ethereum might face short-term challenges, the potential for recovery in 2025 remains strong.
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