Cryptocurrency analyst The Cryptagon has recently suggested that Ethereum could be following a similar cycle to Bitcoin’s 2018 to 2021 cycle, indicating a bullish outlook for ETH. Despite ongoing selling pressure among ETH investors, there are signs that Ethereum’s price trajectory may be on a positive trend.
In a TradingView post, The Cryptagon pointed out the similarities between Ethereum’s current cycle and Bitcoin’s previous cycle, hinting that ETH holders could expect a favorable outcome based on historical patterns. While Ethereum has faced significant downward pressure since December, the analyst remains optimistic about the potential for new highs, drawing parallels to Bitcoin’s 2021 cycle.
The analyst highlighted a key moment in Bitcoin’s 2021 cycle where a rebound from falling support led to a breakout above resistance, propelling the price to new heights. Drawing from this analogy, The Cryptagon predicted that Ethereum could potentially reach $8,000 in its current market cycle as it emulates similar price movements.
However, this positive forecast for Ethereum comes amidst a backdrop of record selling activity, as reported by Cryptoquant founder Ki Young Ju. Over the past few months, Ethereum has seen unprecedented levels of active selling, contributing to its underperformance compared to other major altcoins like XRP and Solana.
At present, the most crucial price level for Ethereum is $1,887, according to crypto analyst Ali Martinez. This level represents a significant support zone where a large number of investors have purchased 1.63 million ETH. A breach below this level could trigger a substantial sell-off and potentially lead to a sharp decline in Ethereum’s price.
Martinez has also raised the possibility of Ethereum dropping to $800, citing a strong resistance trendline at the $4,000 level that has recently been breached. This development has increased the likelihood of a 70% price drop to the $800 target, according to the analyst’s analysis.
As of the latest data from CoinMarketCap, Ethereum is trading around $1,893, showing a slight increase in value over the past 24 hours. The cryptocurrency market remains volatile, and investors are advised to monitor price movements closely to make informed decisions.
In conclusion, while Ethereum’s price outlook may face challenges due to ongoing selling pressure, there are indications that the cryptocurrency could still experience significant price movements in line with historical cycles. It is essential for investors to stay informed and consider all factors before making investment decisions in the ever-evolving cryptocurrency market.