As the second-largest cryptocurrency and the dominant altcoin based on market capitalization, Ethereum continues to spark debate in the current market cycle. Numerous analysts have repeatedly predicted ETH could surge to a five-figure valuation this cycle, citing different reasons. Now, well-known analyst Ted Pillows is offering a new historical observation that reinforces this generally optimistic outlook.
Analyst: Expect ETH Correction Before Potential $10,000 Surge
In a post on X, dated September 20th, Pillows presented a technical examination of the ETH market, indicating that the altcoin is consolidating just under its 2021 record high. This behavior, according to historical data, may indicate a bullish trend.
Currently priced just under $4,500, Ethereum has struggled to definitively maintain a position above its previous cycle peak of $4,878, achieved in November 2021. However, the current period of consolidation mirrors a similar pattern observed during the previous bull run. Back in 2021, ETH underwent a significant 25% correction after retesting its 2017 all-time high of $1,400, before resuming its rapid ascent to new heights above $4,800.
Applying this historical context to the present market, Ted Pillows suggests a comparable correction could push ETH back toward the $3,700 to $3,800 range. While such a price dip may cause concern for short-term investors, Pillows’ analysis indicates it is a necessary recalibration before Ethereum can initiate a substantial breakout.
Following this corrective phase, the market expert anticipates Ethereum will embark on a substantial rally, potentially reaching $10,000 by early 2026. This forecast represents a potential increase of approximately 100% from its current market value.
Ethereum DEX Volume Surpasses $3.5 Trillion
In related developments, activity on Ethereum’s decentralized exchanges (DEXs) is booming. Data from Coin Bureau reveals that cumulative DEX trading volume has exceeded $3.5 trillion. This achievement highlights Ethereum’s central role as the foundation of decentralized finance (DeFi), fostering liquidity and trading throughout the cryptocurrency landscape.
Despite this significant milestone, Ethereum’s price has faced downward pressure over the past week, mirroring trends observed across other crypto assets. The cryptocurrency is currently trading at $4,470, reflecting a 4.32% decrease in the last 7 days. Simultaneously, daily trading volume has also declined by 47.31%, reaching a value of $17.1 billion.
In a separate post on X, Ted Pillows also pointed out that if Ethereum fails to reclaim the $4,500 level, the next significant support area lies between $4,000 and $4,200. While this range is vital for sustaining bullish momentum, a more substantial pullback to below $4,000 would still align with the historically bullish pattern mentioned previously.