- Ethereum is nearing its long-term growth channel’s lower boundary at $1,600, historically a launchpad for major price surges in previous cycles.
- Momentum indicators and on-chain data mirror past setups, signaling renewed buying interest at Ethereum’s pivotal support zone.
- Ethereum’s market sentiment is currently in “extreme fear,” suggesting potential exhaustion of sellers and the possibility of a price reversal.
Ethereum is once again approaching a historical price level that has defined two previous market cycles, fueling speculation around a third rally.
Ethereum Revisits Its Long-Term Support Channel
Ethereum is trading near the lower boundary of its long-term growth channel, around the $1,600 level. This area has been referred to as the “Millionaire Zone” by trader @MerlijnTrader, who noted its importance in previous cycles. The zone acted as a launchpad in both 2017 and 2020, when Ethereum prices surged after testing this lower support.
The value of Ethereum rose from under $20 to exceed $1,200 when it reached this price level during 2017. Ethereum performed a comparable pattern in 2020 after starting at $200 and reaching $4,000 during an 18-month timeframe. After reaching this specific price zone, rallies propelled early traders to receive strong market gains that demonstrated the price area’s ability to shift market trends.
Current Market Indicators Mirror Past Setups
Momentum indicators have returned to historical lows, resembling the setups seen in previous bull runs. On-chain data shows an increase in address activity and sustained buying interest near this key support zone. These elements contributed to the last two breakouts, reinforcing the idea that the current positioning may carry weight.
Traders monitoring long-term charts are closely watching whether this level will again serve as the springboard for another upward trend. The repeated pattern has made many view this zone as a reliable area for positioning ahead of long-term moves.
Sentiment and Market Behavior Shift
Another analyst Henry (@LordOfAlts) noted that Ethereum is currently in a phase of “extreme fear,” with many sellers showing signs of exhaustion. This sentiment often emerges before a shift in price direction, especially when paired with historically relevant support.
While uncertainty remains, Ethereum’s past responses to this price area continue to shape trader expectations. Market participants are now evaluating whether the current conditions will set the stage for another high-momentum cycle.
