Ethereum (ETH) stands at a critical turning point, with opinions split on its future performance this cycle. Some analysts argue that ETH will continue to lag, possibly underperforming against other assets like Bitcoin, which has shown strong momentum.

However, others are optimistic, believing Ethereum is poised for an aggressive rally, especially if it can establish a solid bounce from current lows.

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Renowned crypto analyst Ali Martinez has shared a compelling technical analysis, highlighting a correlation between ETH and the S&P 500. According to Martinez, this relationship could signal a substantial upward move for Ethereum, aligning with broader market trends in traditional finance.

Martinez’s analysis suggests that Ethereum could be on track for a major breakout if the current setup holds, with a target around the $10,000 mark.

As Ethereum trades near a crucial support level, the coming days will be pivotal in determining its direction. With significant upside potential, if a bullish trend takes hold, this moment may define ETH’s trajectory for the remainder of the cycle. Investors are now watching closely, weighing ETH’s next moves against crypto and traditional market cues.

Is Ethereum Preparing To Rally?

Ethereum (ETH) has been trading precariously around the $2,400 level, with recent dips below this threshold sparking concern among investors hoping for a bullish breakout. This uncertainty has heightened as traders navigate a market riddled with fear, wondering if ETH is about to embark on a long-awaited rally or fall to new lows.

Top analyst and investor Ali Martinez has provided an optimistic outlook, sharing a technical analysis on X that suggests Ethereum’s price movements closely mirror those of the S&P 500. According to Martinez, this dip could be the final one before Ethereum experiences a massive upswing, potentially tripling in value to hit the ambitious $10,000 target. 

Martinez’s analysis taps into broader market sentiment, noting that ETH has shown resilience at key levels and that this correlation with the S&P 500 could indicate strength and stability shortly.

As the U.S. election results unfold and the Federal Reserve’s upcoming interest rate decision looms, the potential for volatility remains high. These factors could introduce sharp price swings, driving ETH lower temporarily before it rebounds and gains momentum for a sustained rally. 

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The combination of market catalysts and Martinez’s analysis has sparked cautious optimism, suggesting that while the near-term risk is high, Ethereum could be on the verge of a significant breakout if it holds its ground through the coming turbulence.

ETH Testing Crucial Demand 

Ethereum briefly dipped below the $2,400 mark, a key support level, before rebounding to $2,440. This bounce has given bulls hope, but to maintain upward momentum and challenge the prevailing bearish outlook, ETH must keep rising and target higher supply zones. 

Critical to this effort will be breaking above the 200-day exponential moving average (EMA) at $2,758—a level that has consistently pushed down price action and acted as a significant resistance since early August.

If bulls succeed in reclaiming this EMA, it could mark a shift in momentum, potentially setting up ETH for a stronger bullish trend. However, if ETH fails to hold above $2,400 in the coming days, it risks a deeper retracement. Analysts have identified the $2,220 level as a crucial line of defense. 

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This lower demand zone could provide the final support necessary to prevent further losses, but if breached, it would likely deepen the bearish sentiment surrounding Ethereum’s current price action. This week will be pivotal, as holding above these key levels could provide ETH with the stability it needs to stage a more aggressive push upwards.

Featured image from Dall-E, chart from TradingView

As Ethereum begins to show positive price action once again, the altcoin is seeing a wave of bullish predictions from multiple crypto experts about its trajectory in the short term, suggesting a potential rally in the upcoming weeks.

A 63% Rally For Ethereum Could Be On The Horizon

In an optimistic post, market expert and enthusiast, Javon Marks has expressed his confidence about a possible bullish breakout, pointing to a robust upside momentum in the near term. The expert points to several market indications and technical setups that show promising signals, with ETH overcoming recent resistance levels that could set the stage for a price spike.

According to the expert, Ethereum seems to be getting close to another significant breakout point, and a bullish break is likely to take place due to a prior bull pattern confirmation and breakout, implying a similar price movement for the altcoin to past positive trends.

As a result, Javon Marks believes that this key breakout will trigger a price growth to the $4,080 level, which is more than 63% away from its current value movement. In addition, the analyst claims that development might turn out to be the start of a much bigger upside in the upcoming weeks.

Javon Marks’ anticipated breakout coincides with the growing sentiment and optimism toward the altcoin, signifying possible renewed momentum. Mark’s prediction also aligns with Ash Crypto, another market analyst and trader, who has forecasted that ETH could hit a new all-time high in 2025.

After examining Ethereum’s recent price action, Ash Crypto noted that the altcoin has reached its major trendline support capable of igniting a notable price surge. This is due to the fact that the digital asset witnessed a hard pump the last 3 times it retested the major trendline.

The first time ETH retested the trendline in 2022, it surged by over 123% in the period of 3 months, the second time caused about 107% increase in 7 months, and the last, which was in 2023 triggered an over 158% upswing in about 6 months. Thus should the digital asset replicate this move, Ash Crypto is confident that it could witness a 100% rally from its present value to a new all-time high in 2025.

ETH Preparing For A Rebound?

Following a few days of downside movement, ETH investors are beginning to show their presence in the market, pushing the altcoin toward a possible rebound. Ethereum is presently trading at $2,460, demonstrating a brief upward movement of about 0.60% daily increase, slowly approaching the $2,500 price level.

Given the heightened interest in ETH, the asset could continue to print more gains as bulls have formed strong support at the $2,450 mark. Data from CoinMarkCap reveals that the trading volume of ETH has surged by more than 20% in the past day.

Featured image from Unsplash, chart from Tradingview.com