Ethereum analysts are closely watching the altcoin, which is stuck in a long downtrend. Some are calling for a major breakout, while others maintain a cautious stance, warning that the downtrend is expected to continue.

Ali Martinez, a cryptocurrency analyst, states that he is hopeful about the coin’s price trajectory Ether it will reach $10,000 in the upcoming bull run.

Martinez, whose research often links ETH to more general market movements, compared Ethereum’s rise to that of the S&P 500, suggesting a similar breakout could be just ahead.

Nevertheless, not everyone is joyful with this hopeful outlook. Peter Brandt, another cryptocurrency expert, maintains an alternative perspective. Brandt, who is known for his technical knowledge and precise predictions, issued a warning regarding a powerful bearish pattern on the ETH daily chart.

In his latest analysis he emphasizes: a “bear flag”— a bearish channel — which he believes indicates a potential additional risk of loss.

Connection to the stock exchange

Martinez based his argument on the historical relationship between Ethereum and the S&P 500 (SPX). Analyzing ETH together with SPX, Martinez noted that both assets bottomed at the end of 2022 and continued to trend higher through 2023.

#Ethereum $ETH is mimicking the S&P500 and this could be the last dip before it triples and hits $10,000! pic.twitter.com/BgpbZQXM6I

— Ali (@ali_charts) November 4, 2024

Based on recent performance, the S&P 500 believes this leveling off indicates that ETH is preparing for a similar breakout. Martinez believes ETH could follow a similar trajectory, perhaps reaching the elusive $10,000 level, while the S&P 500 index fell slightly after breaking through to around $5,900.

If this trend is to continue, then Ethereum needs to be pushed to a level of approximately 310% higher than today’s market price. At the time of writing, Aether was listed at $2,618which means an boost of 8% in the last 24 hours.

Martinez is pleased with this, especially considering the development plays into a broader market perspective, although the target has a very steep curve; However, Brandt warns that the ETH journey may not be as uncomplicated as expected, especially if bearish signals emerge.

A mixture of signals

On-chain data from IntoTheBlock shows that Ethereum holders are divided in sentiment. Currently, almost 23% of vigorous addresses holding ETH are in favorable positions, indicating that these holders are “in the money”.

While this means support is present at some level, the break-even point of 60% of portfolios means the market remains uncertain. Having these people will determine how to buy more units or sell them if the price of Ethereum rises or falls in the coming weeks.

More losses ahead?

Experienced trader Peter Brandt warns that the downtrend in ETH is earnest and unlikely to reverse. Brandt noticed the negative edge of ETH’s daily chart recently and forecast further losses.

Interestingly, there was no buy signal $ETH
In fact, the chart remains bearish with a missed target at 1,551 pic.twitter.com/sjkXyTQXU2

— Peter Brandt (@PeterLBrandt) October 31, 2024

On October 31, veteran analyst Brandt, known for his true forecasts, highlighted Ethereum’s bearish trend on X (formerly Twitter). The one-day ETH chart that started in August shows a downward trend. This “bear flag” indicates that the decline will continue.

Brandt saw no Ethereum buying signals or changes in momentum. His negative opinion contradicts the rally forecasts of speculators. Since the chart does not show any reversal, Brandt believes that the ETH price may drop below current support levels.

Another perspective

While the two are highly contradictory in their opinions, Martinez and Brandt’s analysis of what is likely to happen in the next phases of Ethereum revealed such unpredictability. Ether is seen to continue its upward rally, much like the S&P 500, towards $10,000.

On the other hand, Brandt’s similar warning suggests that difficulties may arise even in the future due to the continued presence of downward forces.

Featured image from DALL-E, chart from TradingView