- Uniswap (UNI) has declined over 60% this year amid a historically bearish first quarter that saw Ethereum drop 45%.
- UNI is currently testing critical neckline support between $4.55-$5.50, forming what could be a head and shoulders pattern with potential for reversal.
- If UNI bounces from current support levels, it could rally toward $17, representing a potential 220% upside from current prices.
- The MACD indicator is showing early signs of a bullish crossover on the weekly timeframe, similar to patterns seen before the last major rally.
Date: Thu, April 17, 2025 | 06:46 AM GMT
The cryptocurrency market has experienced a historically bearish first quarter, with Ethereum (ETH) suffering its worst decline since 2018, dropping a staggering 45%. This widespread downturn has significantly impacted altcoins, including Uniswap (UNI), which has shed more than 60% of its value this year.
The token is now testing a key support zone where a potential rebound could take shape.
Could This Pattern Spark a Reversal?
On the weekly chart, UNI is currently testing right at a neckline support area between $4.55 and $5.50, a level that previously acted as a springboard for major rallies. What’s interesting is that the chart is showing signs of a possible head and shoulders pattern, a classic bearish setup — but as of now, UNI still has a real chance to flip things around by forming a proper right shoulder.
This potential pattern started forming after UNI faced heavy rejection from its March 2024 high around $17. After that peak, a sharp correction brought UNI back to the current support zone, marking the left shoulder. A strong rally of over 300% in late 2024 pushed the token back near its highs, forming the head. Then came another painful correction of around 76%, once again dragging it back down to the crucial neckline zone.
From here, if UNI truly follows the typical pattern behavior, we could see a strong bounce from this support level back up toward the $17 zone — a potential 220% upside from current prices. That bounce could complete the formation of the right shoulder before another decisive move — possibly a pullback toward the neckline for a true breakdown from the larger bearish pattern.
Adding more spice to the setup, the MACD is showing early signs of a potential bullish crossover. On the weekly timeframe, the MACD lines are starting to curl upwards — a setup similar to what happened during the last major rally. If this bullish crossover confirms in the coming weeks, it could provide the momentum UNI needs to fuel a strong rally toward the $17 zone.
What’s Ahead?
All eyes are now on how UNI behaves around this critical support zone. A strong bounce from here could set the stage for an epic rally, giving bulls a much-needed boost.
One key level to watch closely is the 50-week moving average (50 W MA) — a move above this could add strong confirmation that an upside rally is truly underway.
However, it’s important to keep in mind: if the neckline support at $4.55–$5.50 fails, UNI could risk breaking down sharply, confirming the full bearish head and shoulders pattern and potentially setting off another wave of selling.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
The opinions and market insights shared on CoinsProbe represent the views of individual authors based on prevailing market conditions at the time of publication. Cryptocurrency investments carry significant risk and volatility. Readers are encouraged to conduct their own research and seek professional financial advice before making investment decisions. CoinsProbe and its contributors do not accept responsibility for financial losses or decisions made based on published content.
CoinsProbe may publish sponsored articles, affiliate links, or promotional collaborations. All sponsored material is clearly labeled to maintain transparency with our audience. Our editorial decisions remain fully independent, and advertising partnerships do not influence reviews, rankings, or published opinions.
Since 2023, CoinsProbe has delivered reliable insights on cryptocurrency, blockchain, and digital assets. Our content is created by experienced researchers and analysts who follow strict editorial standards focused on accuracy, transparency, and credibility. Every article is carefully reviewed and verified using trusted sources and current market data. We provide unbiased analysis and timely updates covering everything from emerging crypto projects to major industry developments.
