Bitcoin ($BTC) and altcoins have not been able to break out of the downward trend that started in October and is still continuing.
meanwhile $BTC Ethereum (ETH) and altcoins also suffered significant losses during this decline, dropping to $80,000. However, things may be changing for Ethereum.
One analyst said that Ethereum could enter a medium- to long-term uptrend similar to 2021.
Citing the cyclical pattern between global liquidity, the Russell 2000 Index, and Ethereum price, crypto analyst Sycoderic argued, using a pseudonym, that Ethereum could enter a similar uptrend in 2021.
This process consists of three phases. A rising breakout in global liquidity, followed by a breakout and bullish confirmation in the Russell 2000 Index, and a delayed breakout in Ethereum.
“Looking at historical trends, first global liquidity increases, then the Russell 2000 index rises, and after a certain delay, Ethereum takes off completely. The same sequence is reappearing on the current monthly chart.”
At this point, the analyst noted that global liquidity has experienced an upward breakout on the monthly chart, with the Russell 2000 Index following liquidity.
Ethereum typically experiences a bullish breakout weeks to months after these two phases.
According to the analyst, in the 2021 cycle, Ethereum entered a full bull phase approximately 119 days after the Russell 2000 Index confirmed its uptrend. If this pattern repeats, a medium- to long-term bullish breakout for Ethereum could occur around March 2026.
Finally, the analyst pointed out that Ethereum had previously appreciated about 226% between March and November 2021, according to historical data.
BecauseBitcoin CEO Max also said that the Russell 2000 Index is leading the rise in Ethereum's price, adding that the Russell 2000 Index's recent reaching an all-time high (2,738) is “a signal that increases the likelihood of further gains for Ethereum.”
*This is not investment advice.
