Ethereum has been experiencing sluggishness in its price performance recently, as the cryptocurrency continues to closely follow Bitcoin’s movements. Currently trading at $2,392, Ethereum is down 1.5% in the past 24 hours, adding to its gradual decline in recent days.
This drop follows a brief price surge last week, where Ethereum saw a slight surge to above $2,600. Despite the minor increase, Ethereum remains down by 51% from its all-time high of $4,878, recorded in 2021.
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Ethereum Potential To Fall 53%
The sideways movement in Ethereum’s price has left traders cautious. Amid this, renowned crypto analyst Ali has offered his perspective on Ethereum’s current trajectory in a recent post on X.
Ali pointed out that Ethereum’s price action tends to follow a particular pattern based on TD Sequential indicators. He explained that whenever Ethereum breaks above the TD setup resistance trendline, a strong bull run often ensues.
However, when Ethereum dips below the TD setup support trendline, it typically results in a significant price correction. According to Ali, Ethereum is nearing a critical support level of $2,250, warning that if this support is breached, it could trigger a major price drop.
Ali further emphasized that ETH has previously seen an average of 53% corrections following similar breakdowns, suggesting that losing the $2,250 level could spell trouble for the cryptocurrency.
Each time #Ethereum breaks above the TD setup resistance trendline 🔴, a strong bull run follows. But when $ETH breaks below the TD setup support trendline 🟢, we’ve seen an average 53% correction.
The key support now is $2,250—losing it could trigger a significant price drop. pic.twitter.com/PljkRda78S
— Ali (@ali_charts) October 10, 2024
On The Flip Side
While Ali expresses concern over Ethereum’s potential for a significant downturn, other analysts remain optimistic about its long-term potential.
A crypto analyst going by the name EtherNasYoNAL on X recently shared a bullish outlook for ETH, suggesting that the cryptocurrency could be on the verge of entering a new “mega bull” cycle.
According to the analyst, ETH is currently in the final stages of what they describe as a “retest and accumulation process.” This phase is reminiscent of Ethereum’s price movements in 2020, where it underwent a similar process before the 2021 mega bull run.
The analyst added that Ethereum’s price action in the months of August, September, and October 2020 followed a specific pattern, with accumulation and retests before the asset saw a significant rise.
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EtherNasYoNAL believes Ethereum is currently mirroring this process and is poised to enter another mega bull cycle, expected to occur around 2025.
Despite the current decline, the analyst remains confident that Ethereum’s long-term trajectory is still bullish, encouraging investors to remain patient and await the expected price surge.
#Ethereum winks at the 2025 mega bull!
Before the 2021 mega bull, we witnessed the retest and accumulation process in August, September and October 2020.$ETH is in the final stage of the retest and accumulation process in August, September and finally October before the 2025… pic.twitter.com/VsE36le746
— EᴛʜᴇʀNᴀꜱʏᴏɴᴀL 📈 (@EtherNasyonaL) October 9, 2024
Featured image created with DALL-E, Chart from TradingView