Ethereum Primed for Holesky Launch Though Prices May Dip First

The Ethereum price chart shows an interesting historical summer pattern that crypto expert Benjamin Cowen has identified as repeating since 2018. The trend sees ETH rise in an ascending channel marked by short bursts of decline.

Cowen noted that this pattern emerged again in the summer of 2022 and appears to be materializing this summer as well. If it continues, ETH may see a dip soon before the uptrend resumes. Cowen remains confident the cycle could play out similarly, citing precedent despite some arguing that “this time is different.”

However, certain near-term technical factors point to potential headwinds for Ethereum. Analysts have highlighted a head and shoulders pattern that often precedes declines, with a downside target of around $1,100 if it triggers.

Additionally, Ethereum’s Bollinger Bandwidth, a measure of volatility, is almost the lowest since 2018. This typically precedes major price movements, but the direction is uncertain.

Ethereum Holesky to debut soon

Nevertheless, Ethereum’s fundamentals remain strong, with the major Holesky testnet launch scheduled for September. With 1.46 million validators, it will be Ethereum’s largest public testnet ever, replacing Goerli.

While short-term challenges loom over the Ethereum price action, Cowen’s identified summer pattern provides reason for long-term optimism. ETH has overcome bearish signals before resuming uptrends. This time may yet prove to be no different.