Ethereum Could See a 53% Price Correction If This Happens—Analyst

Samuel Edyme

9 months ago

3 mins read

Ethereum Could See a 53% Price Correction If This Happens—Analyst

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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.

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.

Ethereum price chart. | Source: Ali on X

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.

Ethereum (ETH) price chart on TradingView — ETH price is moving downwards on the 1-hour chart. Source: ETH/USDT on TradingView.com

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.

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

Samuel Edyme

Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.

Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.

Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.

When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)

Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.

In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.

Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.”

PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.

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