Ethereum is flashing mixed technical and fundamental signals as analysts debate whether the second-largest cryptocurrency by market capitalization is preparing for a sharp rebound or facing further downside. While one prominent chartist sees a path back to—and beyond—its all-time high near $4,900, others warn of breakdown risks amid weakening institutional demand and persistent exchange-traded fund (ETF) outflows. ETH traded around $1,968 at press time, up on the day, according to CoinMarketCap.
Hidden Bullish Signals Point to Potential Rally
Javon Marks, a crypto analyst, said in an X post that Ethereum is maintaining a larger Hidden Bullish Divergence pattern, a setup that can indicate trend continuation when prices make higher lows while momentum indicators print lower lows. He argued that, if confirmed, ETH could rally more than 140% and potentially break its all-time high (ATH) around $4,900, with a possible move toward $5,000 by mid-year. Marks also cited a recent response to a Regular Bullish Divergence—typically a reversal signal—as evidence that a broader bullish shift may be forming. In a longer-term view, he suggested ETH could eventually reach as high as $8,500.
Ethereum last set its ATH in November 2021. The network underpins a broad range of decentralized applications and smart contracts, making its price performance a key barometer for the wider crypto market.
Standard Chartered Cuts Target, Citing Softer Institutional Demand
Adding a counterpoint, Standard Chartered has reduced its year-end price target for ETH from $7,000 to $4,000. The bank noted a decline in institutional demand and warned that Ethereum could fall to as low as $1,300 before a recovery takes hold. The reassessment comes as spot Ether ETFs have struggled to attract sustained inflows. Data provider SoSoValue shows ETH-focused funds are on track for a fourth consecutive month of net outflows, underscoring cautious sentiment among larger investors.
Bearish Pennant Would Target $1,136 on Breakdown
On the technical front, another analyst, Trader Tardigrade, cautioned in an X post that a Bearish Pennant pattern—consolidation within converging trendlines following an initial drop—could be forming on ETH’s chart. A decisive move below the current range, he said, might trigger continuation to the downside with a measured target near $1,136. Despite the near-term risk, Tardigrade maintained a constructive longer-term outlook, suggesting Ethereum could eventually recover and climb toward $7,000 after a period of consolidation and breakdown similar to prior market cycles.
Market Snapshot
As of publication, ETH traded around $1,968, reflecting a modest 24-hour gain, per CoinMarketCap. With technical indicators split and institutional flows subdued, traders are watching for confirmation of either a bullish divergence-driven reversal or a continuation of the recent downtrend.