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Ethereum has been experiencing sluggishness in its price performance recently, as the cryptocurrency continues to closely track Bitcoin’s movements. Currently trading at $2,392, Ethereum is down 1.5% in the last 24 hours, adding to its gradual decline in recent days.
This drop follows a brief price rally last week, where Ethereum saw a drop above $2,600. Despite the small increase, Ethereum is still down 51% from its all-time high of $4,878, which was recorded in 2021.
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Ethereum Likely to Fall 53%
The sideways movement of Ethereum’s price has left traders on guard. Meanwhile, the famous crypto analyst Ali gave his opinion on the current trajectory of Ethereum in a recent post on X.
Ali pointed out that Ethereum’s price action tends to follow a certain pattern based on TD Sequential indicators. He explained that whenever Ethereum breaks above the TD setup resistance line, a strong bull run usually follows.
However, when Ethereum drops below the TD setup support line, it usually leads to a significant price correction. According to Ali, Ethereum is approaching the important support level of $2,250, warning that if this support is broken, it may cause a significant drop in price.
Ali reiterated that ETH had previously seen an average of 53% correction following the same collapse, suggesting that the loss of the $2,250 level could cause a crisis for the cryptocurrency.
Each time #Ethereum it breaks above the TD 🔴 setup resistance line, following a strong bull run. But when $ETH breaking below the TD setup support line 🟢, we saw an average correction of 53%.
Key support is now $2,250—a loss of which could trigger a significant price drop. pic.twitter.com/PljkRda78S
– Ali (@ali_charts) October 10, 2024
On the Flip Side
While Ali expressed concern about Ethereum’s potential for significant downside, some analysts remain optimistic about its long-term potential.
A crypto analyst named EtherNasYoNAL on X recently shared a positive outlook for ETH, suggesting that the cryptocurrency may be close to entering a new “mega bull” cycle.
According to the analyst, ETH is currently in the final stages of what they describe as a “reevaluation and accumulation process.” This section reminds us of the movement of Ethereum prices in 2020, where a similar process took place before the 2021 mega bull run.
The analyst added that the price action of Ethereum in the months of August, September, and October 2020 followed a certain pattern, with accumulation and retesting before the asset saw a big increase.
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EtherNasYoNAL believes that Ethereum is currently mirroring this process and is ready to enter another mega bull cycle, which is expected to occur around 2025.
Despite the current decline, the analyst remains confident that the long-term trajectory of Ethereum is still active, encouraging investors to remain patient and wait for the expected price increase.
#Ethereum beckons 2025 mega bull!
Before the 2021 mega bull, we saw a re-evaluation and accumulation process in August, September and October 2020.$ETH it is in the final stages of the re-examination and accumulation process in August, September and finally in October before 2025… pic.twitter.com/VsE36le746
– EᴛʜᴇʀNᴀꜱʏᴏɴᴀL 📈 (@EtherNasyonyaL) October 9, 2024
The featured image was created with DALL-E, a Chart from TradingView