Ethereum's Price Pattern Mimics Bitcoin's, Analysts Predict 72% Drop
1min read Ethereum's current market cycle is mirroring the trend pattern observed in previous Bitcoin cycles, according to market analysts. This observation has led to a significant prediction about the potential trajectory of Ether's price.
During the 2017 to 2021 bull run, Bitcoin experienced four notable price movements. These included a sharp 85% drop from its peak price, followed by a rebound that increased its value by 350% after hitting a confirmed bottom. Subsequently, Bitcoin recorded another 72% decline after reaching a local top. The final leg of this cycle saw a significant rally to the cycle's peak, resulting in a 17x price increase.
Ethereum, the second most valued cryptocurrency by market cap, is currently following a similar trend. After an 85% drop from its previous all-time high, Ether rallied by 350% from its earlier lows. Currently, Ether is trading around 56% below its local top and has been trading sideways. According to the analyst, after completing the first two legs of this cycle, Ether is expected to follow the pattern observed in 2018, potentially hitting lower price levels.
If Ether continues to follow Bitcoin's path, the final flush could drive its price down to $1,300–$1,400, which is the same level Ether hit in January 2018. This scenario would represent a full 7-year round trip, marking the maximum pain point for investors. However, similar to Bitcoin's run in 2020, when it experienced a 17x upward price correction, Ether might be on the verge of a massive bull rally once it completes the current movement pattern. The analyst suggests that if Ether is nearing the end of its flush, it could be preparing for a significant upward run.
At the time of reporting, Ether is trading at $1,907. Over the past seven days, Ether has experienced a loss estimated at 10%, making it the highest loser among the top three cryptocurrencies from the previous week. This price movement aligns with the analyst's prediction that Ether is currently in the midst of a significant cycle, similar to the patterns observed in Bitcoin's past cycles. The potential for a massive bull rally, as suggested by the analyst, adds to the intrigue surrounding Ether's future price trajectory.
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