Ethereum’s (ETH) latest price rally has sparked renewed debate over whether the market is nearing a critical turning point. Analysts are looking closely at past cycles for insight, with some suggesting that history may be repeating itself. If the patterns hold true, ETH could be only weeks away from a cycle peak, making this a decisive moment for investors to consider when it might be time to sell everything.
Ethereum’s Cycle Top Signals When To Exit
Crypto analyst Jackis has shared insights into Ethereum’s recent price movements, indicating when investors should exit the market entirely. In a recent X social media post, the analyst noted that the ETH price action is closely mirroring its behavior from previous market cycles.
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Looking at the chart, Ethereum had hit one of its major cycle tops in January 2018, followed by another peak in November 2021. Moreover, both instances were preceded by a sharp upward trajectory that culminated in heavy corrections. Jackis also points out that in those earlier cycles, ETH was trading significantly above prior highs before topping out. This time, however, the altcoin has not even broken into a new all-time high yet, although it is currently approaching that critical resistance.
Notably, the timing of ETH’s current setup is significant, as the four-year cycle theory suggests that the cryptocurrency could be just four weeks away from a major top. Jackis noted that this window aligns with September, which could serve as a critical moment for investors to reassess risks and consider whether “selling everything” is warranted.
The analyst further highlighted that while Ethereum’s structure shows strength, most altcoins are lagging far behind. Cryptocurrencies such as Binance Coin (BNB), XRP, and Dogecoin (DOGE) have already established their tops in 2021 and remain far below those levels.
Jackie stated that their price action suggests a market environment more consistent with ETH trading around $2,200, rather than its current level below $4,500. Bitcoin, meanwhile, has continued to march higher since its November 2022 lows, forming higher lows and higher highs in a textbook bull market structure.
ETH Panic Selling Or Pre-Breakout Opportunity?
In other news, crypto market expert Ether Wizz argues that the current panic selling of Ethereum mirrors the same mistake traders made with Bitcoin in past cycles. At the time, early sellers underestimated the strength of institutional demand and long-term buyers, only to watch BTC surge far beyond expectations.
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The analyst highlighted a recent rebound in the Ethereum price above the 50-week Simple Moving Average (SMA), which historically has signaled the beginning of explosive rallies. The comparison between Ethereum’s 2025 chart and its 2017 breakout also highlights a similarity. In both cases, the cryptocurrency consolidated, reclaimed its moving average, and then accelerated higher.
Notably, Ether Wizz points out that Ethereum could still experience a short-term correction of 5% to 10%. However, he argues it is misguided to assume ETH has already peaked, maintaining instead that the cryptocurrency is in the early stages of a move that could eventually drive its price toward a new all-time high of $10,000.
Featured image from Pixabay, chart from Tradingview.com
This week, the Bitcoin price has been facing strong selling pressure with the Bitcoin ETFs reporting two consecutive days of outflows after 19 consecutive days of inflows. On Tuesday, June 11, the total outflows registered by the US bitcoin ETFs surged to $200 million.
Bitcoin ETF Trading Volumes Spikes
According to data from Santiment, Bitcoin ETF trading volume has surged to its highest level since May 15. This spike, observed among the top seven largest ETFs, suggests a potential for a price turnaround. Analysts believe the recent volume increase is likely a response to a dip-buying opportunity, indicating renewed investor interest and activity in the market.
On June 11, US Bitcoin spot ETFs experienced a total net outflow of $200 million, marking the second consecutive day of outflows. Grayscale’s GBTC alone saw a single-day outflow of $121 million. Consequently, the total net asset value of Bitcoin spot ETFs has dropped below $60 billion, currently standing at $59.227 billion.
BTC Price Rebound Ahead?
Santiment reports that Bitcoin’s recent dip below $67,000 has led to an increase in buy calls on social media. Historically, when sell calls start to close the gap on buy calls, it indicates rising panic and fear, often leading to a rebound in cryptocurrency prices.
The May 2024 Consumer Price Index (CPI) report will arrive later today, at 12:30 pm UTC (11 hours from now). Analysts currently anticipate a 3.4% Year-over-Year (YoY) or 0.3% Month-over-Month (MoM) increase.
Should the actual figures come in lower than expected, it could signify a slowdown in inflation, potentially boosting the prospects of cryptocurrency prices rising. Conversely, if the numbers exceed expectations, it may indicate ongoing inflation concerns, potentially leading to a drop in cryptocurrency values.
Ahead of the FOMC meeting, the Bitcoin price faces strong selling pressure amid BTC miner capitulation. If the Bitcoin price drops under $67,000, we can see a further pullback of 5-8% in the coming weeks.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Over $41 million of ETH long positions have been liquidated as Ethereum prices flash crash from their April peaks, Coinglass data on April 19 reveals.
Ethereum Remains Volatile
ETH, the native cryptocurrency of the Ethereum network, is under immense pressure when writing. Although the uptrend remains, and the coin has generally posted impressive results over the last four months, the price drop today has led to the biggest liquidation of ETH long positions in over one month.
According to Coinglass data, ETH long positions were also wrecked on March 22 when over $31 million were forcefully closed. On average, less than $10 million of ETH longs have been closed on other trading days in the last month.
The magnitude of long or short liquidation can be used to measure general volatility in the market. Volatility indicates how fast or slow an asset price moves within a given period.
Depending on the general liquidity, asset prices can move at different paces. In crypto, the most liquid assets, like Bitcoin and Ethereum, are usually less volatile than altcoins, for example, those outside the top 50.
$41 Million Of ETH Longs Liquidated
From the $41 million ETH longs liquidated, a big chunk is in OKX and Binance. These are some of the world’s largest cryptocurrency exchanges that support the derivatives trading of crypto assets.
By supporting margin, perpetual futures, and other derivatives, OKX and Binance traders can use leverage to trade bigger positions than they would ordinarily be able to. Although leverage can amplify gains, it risks the trader’s account when prices move against their prediction.
The drop of ETH prices from $2,100 moved against leverage traders in, among other platforms, Binance and OKX, leading to tens of millions of dollars being liquidated.
By liquidating a position, the exchange forcefully closed the long position and secured the margin since it couldn’t cover the ongoing loss. How quickly a position can be liquidated also depends on the leverage level. Traders with high leverage and trading bigger positions in a volatile market stand a higher risk of having their positions liquidated.
The sharp spike in ETH long liquidations is less than a week after $54 million of short positions were liquidated on April 14. The number of ETH shorts closed by the exchange was also the largest in over a month. As the trend observed, most of those short positions were from Binance and OKX. There were also more short positions closed on Bybit and Deribit.
Feature Image From Canva, Chart From TradingView
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