Why Ethereum’s Price Dropped 8% and How a Chart Pattern Suggests a Rally to $15,000
Ethereum’s price has declined by 8.7% from its monthly high, entering a short-term correction amid Bitcoin’s retreat. Despite this, technical analysis points to a potential surge to $15,300 in the coming months, fueled by long-term bullish patterns.
Key Highlights
- Ethereum’s price dropped amid Bitcoin’s 6% decline, causing widespread market liquidations.
- Approximately $200 million worth of Ethereum long positions were liquidated, surpassing Bitcoin’s $131 million.
- Long-term technical patterns indicate a possible rally to $15,300, backed by solid fundamentals and institutional interest.
Short-term Correction Amid Bitcoin’s Decline
Ethereum’s recent price drop aligns with Bitcoin’s pullback from its record high of $104,200 to below $98,000, driven by profit-taking. This correlation led to a ripple effect across altcoins, including Ethereum, which experienced significant liquidations. Data from CoinGlass revealed that $200 million in Ethereum longs and $27 million in shorts were liquidated in the past 24 hours.
While this volatility caused concern among traders, it’s viewed as a short-term event in the context of Ethereum’s long-term growth trajectory. 
Long-term Bullish Outlook
Ethereum’s technical analysis suggests that its price could rise significantly, potentially reaching $15,300 in the foreseeable future.
- Historical Cycles: Ethereum’s weekly price chart reveals consistent bullish patterns since 2015, including flag and pennant formations that often precede strong rallies.
- Bullish Projection: Using the flag pole projection, Ethereum could target $15,313, marking a 305% increase from its current price level. This scenario mirrors previous rallies, such as Ripple’s and Stellar’s 500% surges in November.
- Support from TradFi: Backing from financial giants like BlackRock further strengthens Ethereum’s potential for sustained growth.
Risk Factors and Invalidation
The bullish forecast would be invalidated if Ethereum falls below $890, its June 2022 low. This level represents the lower boundary of the pennant pattern and a significant support zone. A drop below this threshold could lead to further declines, potentially targeting the 2020 low near $100.
Conclusion
Ethereum’s recent correction is seen as a temporary setback in an otherwise optimistic long-term outlook. If historical patterns hold true, Ethereum could achieve significant price milestones, including a potential rally to $15,300, supported by strong fundamentals and a favorable market environment.
