Ethereum Mirrors Bitcoin Post ATH Movement, As Market Bears Target 20% Correction

[Ben Graham]

Popular crypto analyst and key opinion leader Ted Pillows has outlined an insightful trend in the Ethereum (ETH) market amidst an ongoing price correction. Since hitting a new all-time high of around $4,900, the prominent altcoin has experienced an extensive price pullback. However, Pillows’ insights suggest further price drops may lie ahead, before another explosive rally.

Ethereum Heading To $3,900 Before Major Surge – Here’s Why

In an X post on September 6, Pillows reports that Ethereum appears to be replicating some part of Bitcoin’s price movement from the last market cycle. Notably, the premier cryptocurrency had experienced a 20% correction after reaching the previous ATH of $20,000 from the 2017 bull run. Thereafter, Bitcoin embarked on a bullish price run to establish a new ATH around $69,000.

Similar to these conditions, the chart below shows that Ethereum has recently broken out of a forming symmetrical triangle, touching its previous ATH of $4,860 from 2021. Since then, the altcoin has slipped into a corrective phase, with present market levels now within the $4,200 region, leading to Pillows’ suggestions of a duplicated price movement.

However, if Ethereum is indeed mirroring Bitcoin’s price performance from 2021, ETH bulls should expect a further price decline to around $3,800-$3,900 to complete the 20% price correction. While such a price loss would represent an additional 9.68% from present market prices, it could also complete the perfect bullish set-up for a parabolic rally.

Going by BTC’s price history, Ethereum could likely experience a 4.5x price surge with potential price targets around $22,000. Notably, this projection exceeds the $10,000 ceiling that many analysts currently anticipate. However, a potential decline below the predicted $3,800-$3,900 could invalidate such bullish forecasts, presenting new downside targets around $3,400-$3,600.

Ethereum Market Outlook

At the time of writing, Ethereum is trading at $4,263, reflecting a 1.35% decline in the past day and a 1.53% loss over the past week. However, on the broader timeline, ETH remains in positive territory, posting a 10.53% gain over the past month as bulls maintain longer-term momentum.

According to on-chain data from analytics firm Sentora, the altcoin is showing signs of heating activity. In particular, Ethereum’s total network fees for the week increased to $11.93 million, up 19.4% compared to the previous week, signaling heightened transaction activity and demand for block space.

Meanwhile, exchange netflows stood at -$2.09 billion, pointing to substantial outflows from centralized exchanges as investors opted to move their assets to personal wallets.  With a market cap of $516.03 billion, Ethereum continues to rank as the 2nd largest cryptocurrency and 22nd largest asset in the world.