Ethereum has seen a slowdown in prices lately as the cryptocurrency continues to closely track Bitcoin’s movements. Currently trading at $2,392, Ethereum has fallen 1.5% in the past 24 hours, adding to its gradual decline in recent days.

This decline follows a brief price rally last week, when Ethereum saw a slight augment to over $2,600. Despite the modest gain, Ethereum remains down 51% from its record high of $4,878 recorded in 2021.

Ethereum’s potential will drop by 53%

Ethereum’s sideways price movement has made investors cautious. Amid this, renowned cryptocurrency analyst Ali offered his perspective on Ethereum’s current trajectory in a recent post on X.

Ali noted that Ethereum’s price action tends to follow a specific pattern based on TD Sequential’s metrics. He explained that whenever Ethereum breaks the TD setup resistance trendline, there is often a sturdy bull rally.

However, when Ethereum falls below the TD setup support trend line, it usually results in a significant price correction. According to Ali, Ethereum is approaching the critical support level of $2,250, warning that if this support is breached, it could result in a earnest price decline.

Ali further highlighted that ETH has previously seen an average 53% correction after similar breakdowns, suggesting that a loss of the $2,250 level could spell trouble for the cryptocurrency.

Every time #Ethereum breaks the resistance trend line of the TD configuration 🔴, a sturdy bull run follows. But when $ETH breaks below the TD setup support trend line 🟢, we have seen an average 53% correction.

The key support is currently $2,250 – its loss may result in a significant price drop. pic.twitter.com/PljkRda78S

— Ali (@ali_charts) October 10, 2024

Across

While Ali expresses concern about Ethereum’s potential for a significant downturn, other analysts remain positive about its long-term potential.

A cryptocurrency analyst who goes by the pseudonym EtherNasYoNAL on X recently shared bullish trends perspectives for ETH, which suggests that the cryptocurrency may be on the verge of entering a recent “mega bull” cycle.

According to the analyst, ETH is currently in the final phase 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 ahead of the 2021 mega bull run.

The analyst added that Ethereum’s price action during the months of August, September, and October 2020 followed a specific pattern, with accumulation and retesting before the asset experienced significant growth.

EtherNasYoNAL believes that Ethereum currently reflects this process and is poised to enter the next mega bull cycle, which is expected to occur around 2025.

Despite the current decline, the analyst remains confident that Ethereum’s long-term trajectory is still up, which encourages investors to remain patient and wait for the expected price augment.

#Ethereum winks at mega bull 2025!

Before the 2021 megabull, we witnessed a retest and accumulation process in August, September and October 2020.$ETH is in the final stages of the process of retesting and accumulating in August, September and finally October before 2025… pic.twitter.com/VsE36le746

— EᴛʜᴇʀNᴀꜱʏᴏɴᴀL 📈 (@EtherNasyonaL) October 9, 2024

Featured image created with DALL-E, chart from TradingView