After a week-long bullish rally, the crypto market took a slight cool-off during Tuesday’s U.S. market session. As a pioneer digital asset, Bitcoin plunged 2%, the Ethereum price followed by nearly 3.5%, projecting a relief pullback for buyers to recuperate the exhausted bullish. ETH’s tendency to follow BTC’s lead parallels the 2021 bull cycle, underscoring their correlation and how they relate to reaching new all-time highs (ATHs).
With the crypto market today, ETH price has traded at $3,259 and holds a market cap of $392.26 Billion. According to Coingecko, the global crypto market cap is $2.91 Billion, with a 24-hour trading volume of $368.5 Billion.
Ethereum Price History Provides Clues for Next All-Time High
The first half of November has been strongly bullish for cryptocurrency markets following the U.S. elections buzz, which concluded with Donald Trump’s victory.
The bullish momentum gained further traction as Bitcoin hit a new all time high of around $90,000. However, the second largest cryptocurrency, Ethereum, trails behind, currently trading 33.3% down from its ATH high of $4,891.
While the Ethereum foundation’s selling raises concerns about the asset’s growth potential, the market analyst IamCryptoWolf shares an interesting correction between BTC and ETH concerning the previous cycle and ATHs.
The chart analysis showcased in the tweet reflects a pattern observed during the 2020-2021 market cycle. Bitcoin’s early breakout to ATHs often sets the stage for altcoins, including Ethereum, to follow suit.
After Bitcoin’s breakout above $20,000 in December 2020, Ethereum price prediction took nearly seven weeks to reach its previous all-time high of $1,420. However, the bull cycle pushed ETH price up 700% before setting a top at $4,868.
Thus, with the accelerated inflow in spot ETH ETFs, the Ether price could drive a rally to new ATH in 7-8 weeks.
ETH Supply Held by Whales Climbs to 45%
According to Santiment data, the percentage of ETH’s supply held by top addresses has been steadily increasing, recently reaching a high of 45%. This trend indicates the major holders continue to grow their position in ETH, signaling their confidence in the asset’s future growth.
Historically, whale accumulation has coincided with a major market reversal, a crucial factor in driving a prolonged uptrend.
On a contrary note, the Ethereum price could offer occasional pullback, with the potential for 20-and-50-day EMA to recuperate the bullish momentum.
Frequently Asked Questions (FAQs)
Historical patterns suggest ETH could rally to a new ATH in 7-8 weeks if market conditions align.
Santiment data shows that top Ethereum addresses now hold 45% of the supply, signaling strong confidence from major holders in ETH’s future growth
The 20-day and 50-day exponential moving averages (EMAs) could act as critical support levels during price corrections,
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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