Ethereum, a leading cryptocurrency, has been experiencing a slowdown in its price trajectory recently, maintaining a close correlation with Bitcoin’s movements. As of now, Ethereum is trading at $2,392, reflecting a 1.5% decrease over the past 24 hours. This decline extends a gradual downward trend observed in recent days.
Last week, Ethereum experienced a brief price boost, climbing to over $2,600. However, despite this uptick, Ethereum remains significantly below its all-time high of $4,878, achieved in 2021, marking a decrease of 51% from that peak.
Analyzing Ethereum’s Potential Downtrend
The sideways fluctuation in Ethereum’s price has instilled a sense of caution among traders. In this context, esteemed crypto analyst Ali provided insights into Ethereum’s current price trajectory through a recent post on X. Ali noted Ethereum’s price movements often adhere to distinct patterns as indicated by TD Sequential indicators. He elaborated that if Ethereum surpasses the TD setup resistance trendline, a robust bullish trend typically follows.
Conversely, a breach below the TD setup support trendline generally results in a notable price correction. Ali highlighted that Ethereum is approaching a crucial support point at $2,250, cautioning that if this level is breached, a major price decline could ensue. Historically, Ethereum has experienced an average of 53% corrections following similar breakdowns, suggesting that losing the $2,250 support could pose significant challenges for the cryptocurrency.
Potential for Price Recovery
In contrast to Ali’s concerns about a possible downturn, some analysts remain hopeful about Ethereum’s long-term potential. A crypto analyst known as EtherNasYoNAL on X recently shared a positive outlook for Ethereum, postulating that the cryptocurrency might be on the brink of a new “mega bull” cycle.
According to this analyst, Ethereum is currently in the final stages of what they call a “retest and accumulation process.” This phase is similar to Ethereum’s price behavior in 2020, where it underwent a comparable process before the mega bull run in 2021. The analyst pointed out that during August, September, and October of 2020, Ethereum’s price followed a specific pattern, marked by accumulation and retests before experiencing a substantial rise.
Long-term Optimism for Ethereum
EtherNasYoNAL believes that Ethereum is currently echoing this process and is poised to enter another mega bull cycle, anticipated to occur around 2025. Despite the ongoing decline, the analyst remains optimistic about Ethereum’s long-term trajectory, encouraging investors to be patient and await the anticipated price surge.
Such insights underscore the dynamic nature of Ethereum’s market behavior, with varying perspectives offering a broader understanding of its potential future movements. Investors and enthusiasts alike are keenly observing these developments as they unfold, hopeful for a positive shift in Ethereum’s market trajectory.
