Ethereum News Today: Ethereum Could Mirror Bitcoin's Bullish Turn After 20% Correction

Analyst Yi Li Hua has indicated that Ethereum (ETH) is nearing the conclusion of its price correction phase, which has brought the cryptocurrency down from its recent all-time high of approximately $4,900. According to Yi Li Hua, the $4,100–$4,300 range remains a key entry point for investors, suggesting that the market is poised for a potential reversal in the near term. These insights are part of a broader discussion around Ethereum’s movement, drawing parallels to Bitcoin’s historical performance following similar market cycles.

Crypto analyst Ted Pillows has also observed Ethereum’s current price dynamics, noting that the asset appears to be following a pattern similar to Bitcoin’s post-all-time high correction in 2021. After Bitcoin reached a peak of $69,000, it had previously fallen by 20% from $20,000, only to begin a major bullish phase afterward. Pillows suggests that Ethereum could follow a similar trajectory, with a further decline to $3,800–$3,900 potentially setting the stage for a parabolic rally. If this pattern materializes, the cryptocurrency could see a price surge of up to $22,000, significantly exceeding many current market expectations.

Ethereum’s technical performance supports this analysis. Recent on-chain data from analytics firm Sentora reveals a rise in transaction activity, with the network’s weekly fees increasing by 19.4% to $11.93 million. This suggests growing demand for block space and greater engagement with the Ethereum ecosystem. Additionally, exchange netflows have recorded substantial outflows of -$2.09 billion, as investors transfer holdings from centralized exchanges to personal wallets. This trend is typically associated with bullish positioning, indicating that holders are less inclined to sell in the short term.

The current price of Ethereum stands at $4,263, down 1.35% in the past 24 hours and 1.53% over the past week. However, the broader 30-day outlook remains positive, with the asset posting a 10.53% gain. This resilience underscores the continued confidence of long-term investors in Ethereum’s fundamentals, particularly in light of ongoing network upgrades and the broader adoption of decentralized finance (DeFi) and smart contract platforms.

While the market remains cautiously optimistic, analysts caution that any movement below the $3,800–$3,900 level could invalidate bullish projections, potentially leading to a further decline toward $3,400–$3,600. As such, the $4,100–$4,300 range continues to serve as a critical price point for both investors and traders, offering a strategic entry window amid the current market dynamics.

The broader digital asset market is also showing signs of consolidation and growth. Ethereum maintains a market capitalization of $516.03 billion, holding its position as the second-largest cryptocurrency by market value. With increasing transaction volumes and outflows from exchanges, the data points to a strengthening network effect, which could further support Ethereum’s long-term price resilience.

Source:

[1] Ethereum Mirrors Bitcoin Post ATH Movement, As Market Bears Target 20% Correction (https://www.newsbtc.com/news/ethereum/ethereum-mirrors-bitcoin-post-ath-movement-as-market-bears-target-20-correction/)

[2] Ethereum Price Correction Expected to Reach $3,900, Potential Rally (https://holder.io/news/ethereum-price-correction-3900-potential-rally/)