Ethereum, the second-largest cryptocurrency in the market, is showing signs of a potential rally that could mirror the historic surge seen in Bitcoin back in 2021. A crypto analyst known as TradingShot has highlighted the similarities between Ethereum’s current cycle movement and that of Bitcoin, suggesting that the altcoin could be on the verge of a significant price increase.
The analysis posted on TradingView by TradingShot illustrates how Ethereum’s recovery from a major price crash is reminiscent of Bitcoin’s recovery in 2021. The initial crash for Ethereum was triggered by the ‘Trade War Crash’, following Donald Trump’s announcement of tariffs on other countries. This led to a substantial decline in Ethereum’s price, dropping from over $2,400 to below $1,500 in a short period.
Currently, Ethereum is facing a crucial resistance level at around $4,200, similar to Bitcoin’s resistance at lower highs during its recovery phase. The altcoin is struggling to break above the 1-week MA50, which is a key level to confirm the bullish trend. If Ethereum manages to surpass this level and break the lower highs, a significant rally could be on the horizon.
In a best-case scenario, if Ethereum follows a similar trajectory to Bitcoin’s 2021 rally, the price could potentially soar above $10,000. This would put ETH on track to reach new all-time highs and potentially surpass the $15,000 mark, emulating Bitcoin’s remarkable 1,700% surge. The timeline for this rally would align with the one-year mark from the Trade Wars crash, pointing towards a potential breakout in 2026.
The potential for Ethereum to replicate Bitcoin’s historic rally has captured the attention of investors and analysts alike. With the crypto market showing signs of renewed bullish sentiment, all eyes are on Ethereum as it strives to break through key resistance levels and embark on a path towards new highs. Only time will tell if Ethereum can mirror Bitcoin’s monumental rally and establish itself as a dominant force in the digital asset space.