Key Takeaways
- Ether is leading a crypto market rally.
- Analysts point to patterns in ETH’s price chart that resemble gold and Bitcoin before major breakouts.
- If ETH fails to break out of its descending channel, a slide to $3,500 could be on the cards.
As crypto rallied on Sunday, Oct. 26, Ether outperformed the overall market, climbing 4.7% in 24 hours as of Monday morning.
Toward the end of a challenging October for the cryptocurrency, analysts point to ETH price patterns that suggest a major breakout could be imminent.
Pattern 1: Gold 2025 Breakout
Comparing the price charts of ETH and gold on Sunday, X user Merlijn The Trader argued that “Ethereum is mirroring gold’s move” in late 2024, right before XAU embarked on its most significant rally in decades.
The pattern he observed consists of three positively-skewed level peaks over the course of two years, followed by a consolidation phase that preceded gold’s breakout.
If it follows the same pattern, Ether’s price swings between $3,700 and $4,700 since July may have set the stage for a major rally akin to gold’s performance in 2025.
However, CCN’s Valdrin Tahiri stressed that although the pattern is valid, “the Ethereum price has to break out from the channel to confirm it.”
“While it fails to do so, the ETH price movement is creating lower highs, a sign of weakening momentum and potential trend shift,” hew cautioned.
Pattern 2: Bitcoin Post-Halving
Zooming in from Merlijn The Trader’s view, Kamran Asghar highlighted another pattern in Ether’s price chart that resembles Bitcoin in 2024.
In March that year, BTC rallied significantly in the weeks running up to the halving event, with just one correction occurring in mid-March.
Post halving, BTC remained in a descending channel until the beginning of October, which marked the start of a major bull cycle.
According to Asghar’s analysis, Ether’s performance in July–August is the equivalent of Bitcoin’s pre-halving run—a roughly month-long rally interrupted by a short drawback midway through.
Since then, Ethereum has been in a descending channel that approximates BTC in 2024. With a potential breakout from that channel in sight, if the pattern holds, ETH could hit $7,000–$8,000 by December, Asghar predicted.
Uptrend or Bull Trap?
While some analyses paint a rosy picture for Ether, not everyone is convinced that Sunday’s surge signals the start of a sustained bull run. Skeptics warn that the rally could be a classic bull trap.
Analysts are watching closely to see if ETH can reclaim key resistance levels above $4,200. If it fails to break out of the descending channel highlighted by Asghar, a slide to the channel’s lower bound at $3,500 may be on the horizon.
James Morales is CCN’s blockchain and crypto policy reporter. He has been working in the news media since 2020, writing about topics such as payments, banking and financial technology. These days, he likes to explore the latest blockchain innovations and the evolving landscape of global crypto regulation.
With an educational background in social anthropology and media studies, James uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
