Analysts Map Ethereum’s Five Digit Potential After Steep Correction

Ethereum has respected a rising channel since 2017, with current action aligning with prior consolidation phases.

Ted Pillows views the pullback as a standard cooldown, expecting recovery toward $10,000 once selling eases.

Merlijn The Trader cites MACD expansion, comparing present structure to Ethereum’s explosive 2020 transition.

Ethereum’s retracement from its recent peak has led to scrutiny over its long term movement, yet some analysts maintain that the ongoing decline fits within a broader expansion cycle rather than a reversal

According to Ted Pillows, Ether rallied nearly 250% from its bottom before pulling back, framing the current phase as a natural cooldown. He projected that the correction may end within weeks, followed by an advance toward levels above $10,000

His assessment aligns with Ethereum’s historical pattern of sharp rises followed by consolidation stages near familiar support regions. Notably, its multi year structure has repeatedly transitioned from compression to breakout, reaffirming investor interest during retracements rather than during euphoric highs.

Long Term Channel Outlook

Ethereum’s three week timeframe has consistently respected an ascending channel since 2017, defined by parallel yellow trendlines. Each cycle saw prices bouncing from lower bounds, previously between $100 and $400, then near $1,500 to $2,000 during 2023 and 2024

Source: Ted on X

A sizeable symmetrical triangle formed between 2021 and 2024, compressing price before a 2025 breakout lifted the asset from $2,900 support. That move propelled Ethereum toward the channel’s upper boundary, briefly extending above the $3,600 to $3,800 range

The recent drop to below $4,000 did not break structural integrity, instead positioning price along the mid-channel region. Maintaining that zone between $3,600 and $3,800 would preserve upward momentum within the broader pattern.

Accumulation Reference Points

Pillows framed current price behavior as consistent with accumulation periods seen before past expansions. Levels near $4,000 have historically acted as rest points after impulsive surges, suggesting that long term participants may view such zones as reentry opportunities

However, a decisive breakdown below $3,800 would challenge channel sustainability and introduce the possibility of revisiting $3,700 to $3,500. That level therefore acts as a structural divider between continuation and deeper revaluation. Previous cycles demonstrated similar retests before eventual recoveries that extended beyond prior peaks.

Momentum Metrics Support Upside Expectations

Additional commentary from Merlijn The Trader pointed to renewed technical strength across momentum gauges. He referenced a structural break alongside an accelerating MACD cross, describing momentum as compounding through 2025 as liquidity conditions expand

His outlook connected the current environment to the 2020 transition phase, where Ethereum shifted from stagnation to exponential growth. That comparison positioned upcoming Ethereum exchange traded funds and broader capital inflows as potential amplifiers rather than primary drivers.

The post Analysts Map Ethereum’s Five Digit Potential After Steep Correction appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.