Ethereum experienced a significant decline of 6% in the last 24 hours, dropping below the $4,200 mark. This downturn coincides with insights from a prominent crypto analyst, who has been closely monitoring the cryptocurrency’s price patterns.
In his recent analysis, the analyst highlighted the importance of the 21-week exponential moving average (EMA) for Ethereum’s price trajectory. He suggested that Ethereum could consolidate around this critical level, potentially engaging in sideways price movement rather than experiencing a steep decline. This observation aligns with Ethereum’s historical trend of underperforming in October, particularly when compared to Bitcoin.
The analyst drew comparisons to previous post-halving cycles where Ethereum revisited its 21-week EMA before embarking on substantial rallies toward new cycle highs. He anticipates that this pattern may repeat over the next two to three months, with the possibility of Ethereum surpassing the $5,000 threshold.
While he acknowledges the prospect of a near-term correction or lateral trading, his long-term outlook for Ethereum remains optimistic. He advises investors to exercise patience and allow Ethereum to test its support levels before capitalizing on a potential upward movement, warning against the temptation to time short-term market fluctuations.
In the broader cryptocurrency landscape, Bitcoin and various altcoins have been experiencing notable pressure, with a staggering $1 billion in long liquidations affecting these assets. The analyst pointed out that many altcoins are currently outperforming Ethereum following its all-time high in August. However, he expects liquidity to shift back towards Ethereum once it reaches the 21-week EMA, potentially igniting the next significant rally.
Additionally, the analyst discussed the overall market cycles, suggesting that Bitcoin’s current cycle may extend into the fourth quarter of 2025, a period historically associated with significant price peaks. He identified two crucial weekly closes below Bitcoin’s 50-week moving average, now around $98,000, as a point of concern that could challenge the prevailing bullish sentiment.
In summary, while Ethereum grapples with present volatility, analysts suggest a strategic approach for investors, focusing on long-term growth potential rather than short-term timing.
