Ethereum Drops Below $2,600 After Bitcoin's Decline, Analysts Predict 53% Rally

Ethereum, the second-largest cryptocurrency by market capitalization, has experienced a pullback in price, currently trading below the $2,600 level. This retracement follows Bitcoin's recent decline after hitting a new all-time high. However, analysts are optimistic about Ethereum's potential for a significant rebound in the coming weeks.

Cas Abbe, a Web3 growth manager and crypto analyst, has highlighted that Ethereum is showing signs of life as it attempts to reclaim a pivotal channel, specifically the Gaussian Channel. This technical setup, which consists of upper and lower bands as well as a mid-band, has historically marked the beginning of strong price spikes for Ethereum. According to Abbe, Ethereum has only reclaimed this channel twice since the 2020 market cycle, and both times resulted in significant upward movements.

The first instance occurred in the 2020 market cycle when Ethereum rallied sharply from the $300 level to the $4,000 range, reflecting an over 1,300% growth. The second instance in 2024 saw Ethereum's price rise nearly 100% from $2,400 to $4,100 after reclaiming the channel. With the pattern repeating, there is a possibility that Ethereum is on the verge of another notable rally. Should Ethereum reclaim the Gaussian Channel for the third time, Abbe is confident that it will trigger an upswing to $4,000 by Q3 of 2025.

Despite the bearish pressure and selling activity, there has been a noticeable improvement in on-chain activity for Ethereum. Ted Pillows, a crypto investor and expert, reported that daily contract deployments on the Ethereum network have risen to their highest levels since the 2021 bull market. This surge in daily contract deployments indicates a return of on-chain momentum and increased builder activity, suggesting that experimentation and innovation are heating up on the network. According to Pillows, prices tend to follow growing fundamentals, and he is confident that Ethereum's price could rise significantly to the $10,000 milestone before this cycle ends.