The Ether price could see an imminent correction in the coming weeks before it resumes a sustainable rally to new highs.
Ether ETHUSD rose over 33% during the past month to trade above $3,368 as of 10:23 am UTC on Nov. 23, Cointelegraph data shows.
Despite gaining ground, the world’s second-largest cryptocurrency could be poised for a price correction once Bitcoin BTCUSD breaches the record $100,000 milestone — widely expected to occur before the end of November.
Bitcoin’s next significant drawdown will invite a short-term correction for Ether, according to Gracy Chen, the CEO of Bitget.
Chen told Cointelegraph:
“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.”
The prediction comes as Bitcoin is inching closer to $100,000, unfazed by the $2.6 billion options expiry that occurred a day ago, on Nov. 22.
Ether to $20,000 cycle top in 2025 — Analyst
While a short-term correction may occur before the end of the year, Ether is poised for more long-term momentum in 2025.
Based on emerging technical chart patterns, Ether’s price could reach a cycle top of over $20,000 during the next year, according to popular crypto analyst Wolf.
“Take this with a grain of salt, but the ETH chart is also shaping up as a compressing 3-year triangle consolidation since November 2021,” Wolf wrote in a Nov. 22 X post to his 106,000 followers. “A measured move from the breakout of this massive triangle targets $20,000,” he said.
The ascending triangle pattern, often seen as a bullish indicator, supports Wolf’s prediction of a significant price rally.
Etherem’s utility as leading smart contract platform will catalyze Ether rally in 2025
Ether price has been lagging behind Bitcoin’s price action. Bitcoin’s price rose by over 164% in the past year, while Ether’s only increased by 63%.
However, Ethereum’s dominance as the leading smart contract blockchain will fuel Ether’s rally above its old all-time high.
“[Ethereum] is still the most-used smart contract protocol by volume, with targeted upgrades enhancing its utility,” Chen said. This sets the stage for increased Ether acquisition and positions it to reclaim its all-time high, the Bitget CEO said.
Investors may currently be rotating funds into Bitcoin amid its ongoing rally, but Chen expects Ether to recover as Bitcoin’s momentum cools.
“The market can expect ETH to reclaim the all-time high before the end of this year,” Chen added.
Ether tends to perform positive quarterly returns against Bitcoin’s price in the first half of post-Bitcoin halving years, which could signal an optimistic sign for Ether price at the beginning of 2025, wrote Benjamin Cowen, the CEO and Founder of ITC Crypto, in a Nov. 23 X post.
