The price of Ethereum (ETH) may be preparing for a correction in the coming weeks before continuing its sustained upward trend to new highs. Data shows the price has risen more than 28% in the past month and is trading above $3,295 as of the time of writing.
Although the price is rising, the second-largest cryptocurrency may be preparing for an adjustment when Bitcoin breaks the $100,000 record - expected to occur before the end of November.
According to Gracy Chen, CEO of Bitget, the next significant price drop of Bit will trigger a short-term correction for ETH.
"The market is oversold and a healthy correction may occur. Although ETH has not shown enough correlation after the price surge of Bit, any potential pullback as soon as Bit breaks $100,000 could impact ETH".
This prediction comes as Bit is nearing the $100,000 mark, unfazed by the $2.6 billion options expiration event on November 22.
Although a short-term correction may occur before the end of the year, ETH is preparing for a longer-term momentum in 2025.
Based on technical chart models, renowned analyst Wolf believes the price could reach a cycle top of over $20,000 next year.
"Consider this cautiously, but the ETH chart is also forming a consolidation trend in a 3-year contracting triangle since November 2021. The breakout of this massive triangle will target $20,000".
The ascending triangle pattern is often seen as a bullish indicator, supporting Wolf's prediction of a significant price increase.
In this cycle, the ETH price has recorded slower growth compared to Bit. While the Bit price has recorded an impressive increase of over 164% in the past year, ETH has only achieved a modest 63% increase.
However, Ethereum's dominant role as the leading smart contract blockchain will drive ETH's price surge above its previous all-time high.
"Ethereum remains the most widely used smart contract protocol by volume, with upgrades aimed at enhancing its utility. This sets the stage for increased ETH buying and helps regain the ATH level," Chen said.
Investors may be shifting funds into Bit amid the ongoing price rally, but Chen expects the top altcoin to recover as Bit's uptrend cools off.
"The market can expect ETH to regain its ATH before the end of this year," Chen added.
ETH typically records positive quarterly returns compared to Bit in the first half of years following the Bit halving event. According to analyst Benjamin Cowen, this trend could be a positive sign for ETH prices in early 2025.
You can check the ETH price here.
Disclaimer: This article is for informational purposes only and not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.
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Dinh Dinh
According to Cointelegraph
