Here is the rewritten content in well-organized HTML format:

Ethereum Forming Bullish Pattern

Ethereum has seen an over 10% correction from the New Year highs amid the market retrace, recently falling below the $3,300 support. Despite the ongoing pullback, some analysts remain optimistic about ETH’s Q1 performance, suggesting new highs are around the corner.

Recent Performance

Ethereum shredded its New Year gains today after falling below the $3,320 mark. Following the market retrace, the second-largest cryptocurrency by market capitalization saw a 14% drop from its Monday high of $3,744 to below the $3,300 support.

During the start-of-year rally, ETH’s price recovered 20% from the correction’s lows, surging to pre-retrace levels for the first time in nearly three weeks. However, the market pullback, which saw Bitcoin fall 7.2% in 24 hours, sent Ethereum to the $3,210 level on Thursday morning. The $3,200-$3,300 price range served as a key support zone for ETH throughout December.

Analyst Insights

Several analysts have suggested the cryptocurrency is forming an important reversal pattern, which could send ETH’s price to new highs. On Wednesday, crypto analyst Rekt Capital noted that Ethereum is forming a multi-month inverse Head and Shoulders pattern in the 1M timeframe.

To the analyst, “it’s clear” that the $3,650-$3,760 area is “a major region of resistance, developing just below the $4,000, with price forming that resistance at a Lower High which could act as a Neckline to the pattern.”

Similarly, Miky Bull highlighted the same pattern, hinting that the $7,000 target “is looming.” According to the chart, ETH’s price could see an 87.53% increase near the $7,400-$7,500 price range, based on the bullish setup.

No More ‘Major Retraces’ For ETH?

Crypto analyst Ali Martinez also shared his view on the bullish pattern, asserting a downswing to $2,900 “will be very bullish” for ETH. The analyst argued it would create “an excellent buy-the-dip opportunity to target $7,000 next!”

However, it’s worth noting that the bullish pattern would be invalidated if Ethereum falls below $2,800, where the left shoulder formed.

Conclusion

In conclusion, Ethereum’s recent performance has sparked optimism among analysts, who believe the cryptocurrency is forming a bullish pattern that could send its price to new highs. While the market pullback has caused ETH’s price to drop, many believe this is a temporary correction and that the cryptocurrency will continue to rise in the coming weeks and months.

FAQs

Q: What is the current price of Ethereum?
A: As of this writing, ETH is trading at $3,255, a 2.15% decrease in the daily timeframe.

Q: What is the inverse Head and Shoulders pattern?
A: The inverse Head and Shoulders pattern is a bullish reversal pattern that forms when a stock’s price drops to a new low, then bounces back up to a lower high, and finally breaks out to new highs.

Q: What is the target price for Ethereum according to the bullish pattern?
A: According to the bullish pattern, ETH’s price could see an 87.53% increase near the $7,400-$7,500 price range, based on the bullish setup.

Q: What is the psychological level of resistance for Ethereum?
A: The psychological level of resistance for Ethereum is $3,000, according to Rekt Capital.

Q: What is the opinion of Crypto Wolf on Ethereum’s future performance?
A: Crypto Wolf believes that there will likely be “little to no downside left” and that ETH could retrace another 4% to 7% maximum before it aims for all-time high (ATH) levels.