- Ethereum was trading in a huge triangle at the time of writing, with analysts predicting a possible double bottom pattern.
- Whale trades and active addresses increased, signaling potential upside momentum for ETH’s price.
Ethereum [ETH] has faced significant challenges in recent weeks and has continued its downward trend in both price and market sentiment. After a price drop last month, ETH continued to experience a bearish market trend.
Over the past 24 hours, the asset has seen an additional 4.5% decline, bringing its trading price to $2,399, which represents a further 2.3% decline in the broader market context.
Amid this continued bearish sentiment, some analysts remained optimistic about Ethereum’s future price action.
Crypto analyst Mags, recently on X (formerly Twitter). shared his view on Ethereum’s potential to reverse the downward trend.
Ethereum’s possible recovery?
In his post, Mags noted:
“Ethereum is trading within a huge triangle, and we could see a double bottom formation near the upward sloping trendline support before it moves higher.”
This analysis indicated that ETH may be approaching a pivotal moment, with the potential for a bullish reversal on the horizon.
In technical analysis, a double bottom formation is a bullish reversal pattern, which suggested that the asset’s price was approaching a low and might start to rise again.
This pattern occurs when the price drops to a support level twice, with a slight upward move between the two lows.
If Ethereum’s price follows this pattern as Mags suggests, we could witness a significant upward shift after the current bearish phase.
Source: Mags/X
Ethereum’s technical indicators supported the possibility of a recovery, with trading assets nearing critical support levels at the time of writing.
Should the double bottom pattern materialize, Ethereum could break away from its long-term downtrend and start a new rally.
However, this scenario remains speculative. It’s worth remaining cautious as Ethereum approaches these key price levels.
Whale transactions and active address rebound
Interestingly, despite Ethereum’s price decline, some of the asset’s underlying fundamentals are starting to show positive signs.
For example, facts from IntoTheBlock revealed that Ethereum’s whale transactions – which exceed $100,000 – are starting to recover after a significant drop earlier in August.
On August 5, these transactions peaked at over 16,000 before falling to around 2,210 on August 10. More recent data indicated a recovery, with whale transactions sitting at 4,530 at the time of writing.
Source: IntoTheBlock
This uptick in whale activity suggested that major investors could be positioning themselves for a possible recovery in Ethereum’s price.
A rise in whale trades is generally seen as a positive indicator, as it signals increased interest from deep-pocketed investors, which could fuel a broader market rally.
Read Ethereum’s [ETH] Price forecast 2024–2025
In addition to whale transactions, facts from Glassnode highlighted a recovery in Ethereum’s active address count. While the number of active addresses peaked at 589,000 on August 14, it fell below 400,000 last week.
Source: Glassnode
At the time of writing, this value has risen again to 420,000. An increase in the number of active addresses typically reflects growing user activity on the network, which could also contribute to upward price movements.