Ethereum has been experiencing sluggishness in its price performance recently as the cryptocurrency continues to closely track Bitcoin’s movements. At the moment traded at $2,392Ethereum is down 1.5% in the last 24 hours, adding to its gradual decline over the past few days.
This drop follows a brief price spike last week where Ethereum saw a slight rise to over $2,600. Despite the small increase, Ethereum remains 51% below its all-time high of US$4,878, recorded in 2021.
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Ethereum Potential to Drop 53%
The sideways movement in the price of Ethereum has made traders cautious. Amidst this, renowned crypto analyst Ali offered his perspective on Ethereum current trajectory in a recent post on X.
Ali highlighted that Ethereum price movement tends to follow a specific pattern based on TD Sequential indicators. He explained that whenever Ethereum breaks above the resistance trendline of the TD setup, a strong bull run often occurs.
However, when Ethereum falls below the TD setup’s support trendline, it typically results in a significant price correction. According to Ali, Ethereum is approaching a critical support level of US$2,250, warning that if this support is breached, it could trigger a large price drop.
Ali further emphasized that ETH has already seen an average of 53% corrections following similar breaks, suggesting that losing the $2,250 level could spell trouble for the cryptocurrency.
Every time #Ethereal breaks above the resistance trendline of the TD setup 🔴, a strong bullish run ensues. But when $ETH breaking below the TD setup support trendline 🟢, we saw an average correction of 53%.
The main support is now at $2,250 – losing it could trigger a significant price drop. pic.twitter.com/PljkRda78S
-Ali (@ali_charts) October 10, 2024
On the other side
While Ali expresses concern about the potential for a significant Ethereum slowdown, other analysts remain optimistic about its long-term potential.
A crypto analyst named EtherNasYoNAL on X recently shared a bullish opinion panorama for ETH, suggesting that the cryptocurrency may be about to enter a new “mega bull” cycle.
According to the analyst, ETH is currently in the final stages of what they describe as a “retest and accumulation process.” This phase is reminiscent of Ethereum price movements in 2020, where it went through a similar process ahead of the 2021 mega bull run.
The analyst added that Ethereum’s price action in the months of August, September and October 2020 followed a specific pattern, with accumulation and retests before the asset showed a significant increase.
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EtherNasYoNAL believes that Ethereum is currently reflecting this process and is about to enter another mega bull cycle, predicted to occur around 2025.
Despite the current decline, the analyst remains confident that Ethereum’s long-term trajectory is still bullish, encouraging investors to remain patient and wait for the expected price increase.
#Ethereal wink at the mega bull of 2025!
Before the 2021 megabull, we witnessed the retest and accumulation process in August, September and October 2020.$ETH is in the final phase of the retesting and accumulation process in August, September and finally October before 2025… pic.twitter.com/VsE36le746
—EᴛʜᴇʀNᴀꜱʏᴏɴᴀL 📈 (@EtherNasyonaL) October 9, 2024
Featured image created with DALL-E, TradingView chart