Ethereum (ETH) May Be Heading to $1250 as It Risks Breaking Down from a Parallel Channel

According to a recent post on X by crypto analyst Ali Martinez, Ethereum (ETH) may be heading to $1,250 as it risks breaking down from a parallel channel. However, other analysts suggest a trend reversal could be on the horizon for the second-largest cryptocurrency by market cap.

Crypto analyst Ali Martinez has warned that Ethereum (ETH) may be heading to $1,250 as it risks breaking down from a parallel channel, according to a recent post on X.

While other analysts suggest a trend reversal could be on the horizon for the second-largest cryptocurrency by market cap, any significant recovery might be stalled until ETH manages to close a key resistance level.

Persistent Downtrend May Push ETH Lower

Ethereum has been persistently stuck in a downtrend over the past three months, wiping out more than 50% of its market value. The digital asset has plunged from $4,061 on December 16 to just above $1,900 at the time of writing, marking a steep 50% decline.

suggesting that further downside may be in store for ETH, especially after it dropped below the $2,200 on the daily chart, breaking down from a parallel channel. This breakdown could push ETH’s price as low as $1,250, while resistance is at $3,800.

On the other hand, crypto analyst Daan Crypto Trades offered a more cautiously optimistic perspective. The analyst highlighted that ETH has been consolidating after the recent crypto market sell-off and has formed a falling wedge pattern on the hourly chart – a pattern often associated with a potential local trend reversal. They added:

“But for that to occur I’d want to see the breakout and hold above the white zone. If it can do that, we can start looking for tests into the $2K+ region again.”

Daan also pointed to the declining ETH/Bitcoin (BTC) trading pair. While it has shown some strength over the past few days, the analyst noted that this isn’t enough to signal a relief rally.

Experts Offer Hope For ETH

Meanwhile, crypto trader Merlijn The Trader drew parallels between ETH’s current price action and its behavior during 2019-2020, suggesting that the altcoin might be on the verge of regaining bullish momentum. However, he emphasized that ETH must first clear key resistance at $2,260.

Similarly, crypto analyst Ted brought out the similarities between Ethereum and BTC’s price action from 2019. In an X post, he said:

“What if $4K ETH is like $14K BTC in 2019? What if the Ethereum major rally hasn’t even started? Looking at the BTC 2019-21 fractal, it makes me wonder if ETH’s previous rallies were just the beginning.”

However, Ted also cautioned that ETH might first dip to the $1,400-$1,600 range before any significant trend reversal begins. His analysis aligns with a recent report predicting that ETH could stage a swift recovery to $3,000, driven by a potential short squeeze.

On a more positive note, ETH might be approaching a strong recovery phase after entering a crucial oversold zone. At press time, ETH is trading at $1,933, up 5.2% in the past 24 hours.