Ethereum (ETH) is showing signs of a potential rally above the $3,000 mark, according to emerging technical patterns. A key indicator, the inverse head-and-shoulders pattern, suggests that Ether is preparing for a bullish price reversal, signaling that a short-term rally could push ETH above this psychological threshold. As one analyst noted in an October 17 X post, “ETH inverse [head-and-shoulder] reversal price pattern has a short-term price target of $3,000.”
Predictions of All-Time Highs in 2025
While the $3,000 mark is an important milestone, some traders have set their sights even higher. Popular crypto trader Daink anticipates that Ether could hit $4,000 by the end of this year, with an all-time high expected in the first quarter of 2025. “All-time high will come in 2025 Q1, but for now I like $4,000,” Daink shared.
ETH/USD, 1-day chart, inverse head-and-shoulder pattern. Source: Mikybull
However, despite these optimistic projections, Ethereum remains in a downtrend, having lost over 36% since its yearly high of $4,111 in March 2024. This sluggish performance is attributed in part to Ethereum losing its competitive edge in the layer-1 (L1) blockchain space, according to pseudonymous crypto analyst Ignas.
Potential for Short-Term Corrections
Not all analysts are convinced that Ether will see a smooth rise in the short term. A bearish technical pattern on the one-hour chart suggests that a correction to $2,400 could happen before any breakout. Crypto trader Justin Bennet noted in an October 17 X post that Ethereum could be forming a diamond reversal pattern, which indicates a potential drop to $2,485 if support breaks.
ETH/USDT, 1-day chart. Source: Daink
RSI Indicator Points to Further Corrections
Ethereum’s relative strength index (RSI) currently stands at 59, above the 14-day average of 50. Historically, this level has preceded price corrections. The last time Ether’s RSI hit 60, ETH experienced a six-day correction, dropping to $2,309. Analysts warn that a similar correction could be on the horizon, despite the optimistic outlook for a rally.
