Ethereum’s price trajectory is currently mirroring the movements of Bitcoin, which has been experiencing significant bearish action in recent days. The price of ETH has plunged below the critical resistance level of $2800, reinforcing this threshold as a key barrier. As a result, Ethereum has entered a correction phase that may deepen if bulls fail to maintain support levels above $2400.
What’s driving the downturn in Ethereum’s price? Will it breach the $3000 mark by 2025?
The cryptocurrency landscape has been adversely affected by escalating geopolitical tensions in the Middle East, particularly between Israel and Iran. Over the last 24 hours, the markets have seen over a billion dollars in liquidations, forcing a sharp reversal in price movements. Ethereum has lost all gains accrued in recent days, leading to a decisive invalidation of a previously bullish pattern, which is expected to hinder any imminent rally in its price.
The chart above indicates that, despite the recent setbacks, there are still glimmers of hope for a rebound, as the ETH price remains within a parallel channel. The current trading action between the 50-day and 200-day moving averages is indicative of a potential bullish crossover, often referred to as a “Golden Cross.” However, the relative strength index (RSI) is trapped within a descending parallel channel, raising concerns about anticipated price action. If the correction deepens, Ethereum is likely to test the lower support near the $2400 mark, potentially leading to a rebound towards higher resistance levels.
Is the Altseason Postponed Beyond 2025?
While Ethereum bulls are actively working to defend the critical support levels, current chart patterns have yet to confirm an upward breakout from the existing bearish trend. Meanwhile, Bitcoin’s dominance has begun to rise, indicating a resurgence of liquidity influx into the original cryptocurrency. Although the Altcoin season index saw a brief uptick, signaling the potential for an altcoin rally, it has since retracted, suggesting a return to BTC dominance.
Current market dynamics are not conducive for an impending Altseason, as altcoins show little significant movement in the short term. Consequently, Bitcoin is poised to remain at the forefront, with altcoins likely trailing behind. Unless Bitcoin’s dominance drops below 55%, a short-term Altseason seems unlikely; however, shifts in market conditions could eventually welcome a resurgence of altcoins in the future.
