Ethereum’s $10K Rally Path: Analyst Predicts Short-Term Correction

Ethereum’s current market behavior is drawing striking parallels to its 2021 bull cycle, according to technical analyst Ted Pillows. The second-largest cryptocurrency is consolidating just below its 2021 all-time high of $4,878, currently trading around $4,470. This consolidation mirrors a similar setup from the last cycle when ETH retested its 2017 peak of $1,400 before experiencing a sharp 25% correction.

Pillows’ analysis, shared in a September 20 X post, indicates that Ethereum’s inability to decisively break above its previous cycle peak is actually a potentially bullish signal based on historical data. The analyst notes that in 2021, this exact pattern preceded Ethereum’s meteoric climb to new highs above $4,800. Applying this historical precedent to today’s market, Pillows projects a comparable correction that would send ETH back toward the $3,700–$3,800 zone.

While such a price decline might unsettle short-term traders, Pillows emphasizes that this correction represents a necessary market reset before Ethereum can stage its next major breakout. The analyst’s projection suggests that once this corrective phase completes, Ethereum could embark on a powerful rally potentially reaching $10,000 by early 2026—representing a 100% gain from current levels.

Despite recent price pressures, Ethereum’s fundamental strength remains evident in its decentralized exchange activity. Data shared by Coin Bureau reveals that cumulative DEX trading volume on the Ethereum network has surpassed $3.5 trillion, underscoring the platform’s dominance as the backbone of decentralized finance. This milestone highlights Ethereum’s critical role in fueling liquidity and trading across the entire crypto ecosystem.

However, this substantial achievement comes alongside short-term market challenges. Ethereum’s price has faced pressure over the past week, declining 4.32% alongside broader crypto market weakness. Daily trading volume has also seen a significant drop of 47.31%, currently valued at $17.1 billion. This divergence between strong fundamental metrics and short-term price action creates a complex market dynamic for investors and traders.

Ted Pillows has identified key technical levels that will be crucial for Ethereum’s near-term trajectory. In a separate X post, the analyst noted that if Ethereum fails to reclaim the $4,500 resistance level, the next critical support lies between $4,000 and $4,200. This range represents a crucial zone for maintaining bullish momentum in the intermediate term.

Notably, even a deeper pullback below $4,000 would still align with the historically bullish behavior pattern identified in Pillows’ analysis. The 25% correction scenario that brought ETH to the $3,700-$3,800 range would represent a healthy reset within the context of previous cycle behavior. This perspective provides context for investors concerned about potential short-term volatility, suggesting that such movements may be necessary precursors to significant upward moves.

The convergence of technical analysis from respected voices like Ted Pillows, combined with Ethereum’s demonstrated fundamental strength through its $3.5 trillion DEX volume milestone, creates a compelling narrative for the altcoin’s future. While short-term corrections may test investor resolve, the historical pattern and underlying network activity suggest that Ethereum remains positioned for significant growth potential in the current market cycle.