Ethereum Price Poised for a Correction Before a Massive 2025 Rally
Ethereum’s recent rally has thrilled crypto enthusiasts, but the road ahead might not be as smooth as it seems. While ETH has surged over 33% in the past month, analysts warn that a short-term correction could be on the horizon before the next major uptrend.
A Cooling-Off Period Before the Next Move
Ethereum (ETH) was trading at around $3,368 as of November 23, following a strong bullish month. However, experts suggest that a price pullback could be imminent, especially if Bitcoin (BTC) crosses the long-anticipated $100,000 milestone.
ETH/USD, 1-month chart
ETH/USD, 1-month chart. Source: Cointelegraph
According to Gracy Chen, CEO of Bitget, Ethereum may retrace soon after Bitcoin hits this key price level:
“The market is already oversold, and a healthy correction might occur… Though Ethereum has not shown enough correlation following Bitcoin’s surge, any potential retracement as soon as BTC breaches the $100,000 mark might impact Ethereum.”
Bitcoin continues to move closer to this price milestone, even shrugging off a recent $2.6 billion options expiry. If BTC experiences a pullback, ETH could momentarily dip as well.
2025: The Year of Ethereum?
While short-term volatility is expected, long-term projections for Ethereum remain incredibly bullish. Renowned crypto analyst Wolf suggests ETH could soar to $20,000 in the next cycle, based on emerging technical patterns.
“Take this with a grain of salt, but the ETH chart is shaping up as a compressing three-year triangle consolidation since November 2021,” Wolf shared with his 106,000 followers.
ETH/USD, triangle pattern
ETH/USD, triangle pattern. Source: Wolf
With an ascending triangle pattern—a typically bullish signal—forming on the charts, Wolf estimates a breakout could push Ethereum to an astonishing $20,000 price point.
Related: Ether price eyes $3.7K despite $1.3B whale sell-off
Ethereum’s Leading Role in the Smart Contract Boom
Ethereum has lagged behind Bitcoin’s meteoric rise over the past year, with BTC gaining over 164% compared to ETH’s 63% increase.
ETH/BTC, 1-year chart
ETH & BTC, 1-year chart. Source: Cointelegraph
Despite this, Ethereum’s dominance in the smart contract space remains unparalleled. According to Bitget’s Gracy Chen:
“Ethereum is still the most-used smart contract protocol by volume, with targeted upgrades enhancing its utility. This sets the stage for increased Ether acquisition and positions it to reclaim its all-time high.”
Historically, Ether tends to outperform Bitcoin in the months following Bitcoin halving events. As BTC’s momentum stabilizes, we could see ETH regaining strength and reaching new heights in 2025.
ETH/BTC quarterly returns
ETH/BTC quarterly returns. Source: Benjamin Cowen
Crypto analyst Benjamin Cowen believes this trend could play out once again, with ETH posting strong quarterly returns going into 2025.
The Road Ahead for Ethereum
While a short-term dip may be on the cards, Ethereum is gearing up for a major run in the long term. With technical patterns aligning and its role as the leading smart contract blockchain secured, ETH could be looking at a record-breaking year ahead.
For investors, a potential pullback presents an opportunity to accumulate more ETH while gearing up for what could be a game-changing 2025.
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