Ethereum: Dubious Speculation

Market Analysis - Ethereum is currently trading around $3,000, with price action seemingly driven by chasing narratives [1] - Ethereum's price movements often mirror previous cycles, typically underperforming Bitcoin during rallies [3] - A 40% correction in Ethereum's price has occurred, deeper than the expected 30% drop [5] - The analysis compares Ethereum's current situation to Bitcoin's 2017 performance and Tesla's price action, noting similarities and differences [6][18] - Ethereum's USD valuation is heavily dependent on Bitcoin's performance, with ETH/BTC pair currently in a downtrend [11][16] - The window of weakness for Ethereum against Bitcoin is expected to last for approximately 3 weeks [9][12] Key Levels and Potential Scenarios - $2,900 is identified as a crucial support level for Ethereum; failure to hold this level could lead to a drop to $2,100 [9][30][40] - If Bitcoin drops to $80,000 ($-10,000 or -11%), Ethereum could potentially fall to $2,100 [25][30] - A rally in Bitcoin back to its 200-day moving average could allow Ethereum to hold $2,900 and potentially rally higher [23][37] Time-Based Analysis - December is historically a turning point for the ETH/Bitcoin valuation [10] - From a time-based perspective, Ethereum's current capitulation is similar to Tesla's previous drop, with the current week being the 13th week of the correction [36]