Is Ethereum replicating Bitcoin's explosive trajectory in 2021?
Recently, cryptocurrency analyst TradingShot expressed the view on TradingView that Ethereum's current price structure is very similar to Bitcoin's movement leading up to the bull market outbreak in 2021, and it may be on the path of repeating history.
ETH's trend is remarkably similar to BTC's cycle in 2021
TradingShot points out that the current pullback of Ethereum is very similar to Bitcoin's deep retracement during the COVID-19 lockdown in 2020. At that time, BTC fell sharply from above $9000 to below $4000, with a decline exceeding 50%. Subsequently, Bitcoin rebounded strongly, breaking through both the 1-week MA50 moving average and the downward trend line, eventually reaching an all-time high of $69,000 a year later.
And on the Ethereum side, this round of sharp decline occurred amidst market panic triggered by the 'Trump trade war.' At that time, ETH rapidly fell from above $2400 to below $1500, with a decline exceeding 35%. This wave of collapse has been referred to by some analysts as the 'trade war crash,' and is seen as a prelude to a subsequent market rise.
Currently, Ethereum's price is at a critical breakout point of the 1-week MA50 moving average. Once it stabilizes at this position, it may, like Bitcoin in the past, head toward higher targets.
How much upward potential does ETH have?
According to analysts, Ethereum's main resistance level is at $4200—this corresponds with Bitcoin's 'lower high' structure from that year. If ETH breaks through this level, it would confirm a trend reversal, and the technical signal would strongly favor bullish positions.
So, if ETH continues to develop along the path of Bitcoin in 2021, how much potential for increase does it have?
Let’s take a moment to review: BTC increased by over 1600% during its rebound from a low of $4000 to $69000. If Ethereum repeats a similar movement, its price starting from $1500 could potentially break through $10,000 or even challenge $15,000 within the next year.
Analysts indicate that if ETH replicates BTC's 1700% increase from that year, the final price could reach the $15,000 range, with the timeline potentially falling around a year after the 'trade war crash,' which would be around 2026.
