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.