Ethereum Price Rally Unlikely This Year, Says Expert

Highlights:

• An expert has claimed that Ethereum’s price rally is unlikely this year.
• The analyst broke down ETH’s price movements into phases, claiming that the coin just concluded an initial downtrend.
• Ethereum’s price actions and other statistics relative to other crypto assets showed an unattractive ETH outlook.

In a recent post on X, a renowned market expert explained why Ethereum’s (ETH) price rally is unlikely this year. Interestingly, the analyst presented an overview of Ethereum’s price movements in stages while predicting a likely timeline for a rally. This insight will contain concise but in-depth details of the expert’s analysis. At the same time, the write-up will cut across relevant metrics in ETH’s price action analysis.

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Ethereum is Replicating a Previous Trend

Writing on his verified X handle, TedPillows first asserted that Ethereum has mirrored a similar trend from the 2020/2021 market cycle. According to him, a pattern replication will likely play out in the 2024 – 2025 market cycle. If such happens, ETH could attain a new all-time high (ATH) in the 2024 – 2025 cycle peak. For context, Ethereum’s present ATH played in the 2020 -2021 cycle when the token hit $4,878.26.

Why Ethereum’s Price Rally is Unlikely This Year

TedPillows broke down Ethereum price movements into four different phases. Per the expert, the final phase will result in Ethereum’s parabolic price rally. Meanwhile, based on recent price actions, Ethereum has only completed two phases of TedPillows’ asserted stages.

ETH ticked the boxes for a first breakout and an initial downtrend. On the other hand, a consolidation breakout and a final parabolic run are still pending. As expected, a consolidation breakout is imminent, which the market expert claimed will happen between November and December 2024.

For the final parabolic run that will result in Ethereum’s price rally, TedPillows asserted that it will begin in Q1 of 2025. Therefore, a cycle peak will likely play out in Q1; it will determine how and when to anticipate ETH’s new ATH. How events unfold remains fluid. Nevertheless, market participants can derive insights from TedPillows’ projection in their research. It should serve as a guide and not an ultimate finding.

$ETH 2020-21 🤝 $ETH 2024-25

1st breakout ✅

1st downtrend ✅

Consolidation breakout ⏳

Final parabolic run ⏳

IMO, the consolidation breakout will happen in November/Dec 2024, while the parabolic run will start in Q1 2025. pic.twitter.com/VS9bgILM5D

— Ted (@TedPillows) August 11, 2024

What is Ethereum’s Price Action Reflecting?

While TedPillows has asserted why Ethereum’s price rally seems impossible this year, what are market actions saying? At the time of writing, ETH is changing hands at about $2,540, courtesy of a 4% decline in the past 24 hours.

While the token saw a 10.5% upswing in its 7-day-to-date variable, other specific periods’ price changes recorded declines. Notedly, Ethereum’s 14-day-to-date and month-to-date data reflected losses of about 23.9% and 18.5%, respectively. Other relevant statistics revealed that ETH’s 24-hour trading volume is up by 66.55% with a $14.8 billion valuation.

Ethereum’s Price Movements Relative to Other Tokens

According to Coincodex’s risk assessment analysis, Ethereum’s current price status implies that the token fits into TedPillows stage classifications. Interestingly, Ethereum has outperformed only 50% of the top-ranking cryptocurrencies, excluding Bitcoin. Over the previous year, ETH’s price has only appreciated by 38%, signifying a poor outlook.

Additionally, Ethereum is trading below its 200-day Simple Moving Average (SMA), as sentiments have swung in a bearish direction. Meanwhile, volatility has dropped significantly to a marked low level of about 11.69%. The “Fear & Greed index,” the variable responsible for tracking traders’ attitudes toward an asset, reflected extreme fear at 25. In summary, aside from corroborating TedPillows’ claims about ETH’s present market phase, these indices do not depict a bright outlook.

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