An analyst believes Ethereum’s price action mirrors Bitcoin’s 2021 rally, suggesting a potential price explosion. Let’s dive into the details.
Ethereum’s Echo of Bitcoin’s 2021 Run
The analyst, TradingShot, noticed striking similarities between Ethereum’s current trajectory and Bitcoin’s performance in 2021. Both cryptocurrencies experienced a significant crash followed by a powerful recovery.
The Crashes: A Tale of Two Events
For Bitcoin, the crash was triggered by the COVID-19 lockdowns, sending its price plummeting from over $9,000 to under $4,000 in a month. Ethereum’s equivalent was the “Trade War Crash,” initiated by Donald Trump’s tariffs, which saw its price fall from over $2,400 to under $1,500 in a similar timeframe.
The Recovery: Awaiting the Breakout
Both cryptocurrencies are now attempting to break key resistance levels. For Bitcoin in 2021, this was crossing its 1-week moving average (MA50) and breaking through a lower high trendline. Ethereum is currently facing a similar challenge, needing to surpass its 1-week MA50 and break the resistance around $4,200.
Ethereum’s Potential Price Target
If Ethereum successfully breaks these resistance levels, mirroring Bitcoin’s 2021 recovery, the potential gains could be substantial.
A Potential 10x or More?
Bitcoin’s price soared from under $4,000 to nearly $70,000 after breaking its resistance levels. A similar surge for Ethereum, based on the same timeframe, could propel its price above $10,000 by 2026. A more aggressive, parabolic rally could even push it above $15,000. This is, of course, speculative and depends on many factors.
