Bitcoin (BTC) and altcoins have been unable to escape the downward trend that began in October and is still ongoing.
While BTC fell as low as $80,000 during this decline, Ethereum (ETH) and altcoins also experienced significant losses. However, the situation for Ethereum may be changing.
One analyst said Ethereum could enter a medium- to long-term uptrend similar to the one it saw in 2021.
Accordingly, crypto analyst Sykodelic, using a pseudonym, argued that Ethereum could enter an uptrend similar to the one it saw in 2021, citing the cyclical pattern between global liquidity, the Russell 2000 index, and the Ethereum price.
This process consists of three phases: an upward breakout in global liquidity, followed by a breakout and bullish confirmation in the Russell 2000 index, and then a delayed breakout in Ethereum.
“Looking at past trends, global liquidity increases first, then the Russell 2000 index moves upwards, and after a certain delay, Ethereum fully takes off. The same sequence is reappearing in the current monthly chart.”
At this point, the analyst noted that global liquidity had experienced an upward breakout on the monthly chart, and the Russell 2000 index was now following liquidity.
Ethereum typically experiences a bullish breakout a few weeks to a few months after these two phases.
According to the analyst, in the 2021 cycle, Ethereum entered a full bullish phase approximately 119 days after the Russell 2000 index confirmed its uptrend. If this pattern repeats, Ethereum’s medium- to long-term bullish breakout could occur around March 2026.
Finally, the analyst pointed out that according to historical data, Ethereum had previously risen by approximately 226% between March and November 2021.
BecauseBitcoin CEO Max also stated that the Russell 2000 index has been leading Ethereum’s price increases, adding that the Russell 2000 reaching a record high (2,738) recently is “a signal that increases the possibility of further upside expansion in Ethereum.”
*This is not investment advice.
