Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has been steadily gaining attention as the crypto market shows signs of upward momentum. Over recent days, Ethereum’s price has shown positive strength, leading many to believe that a major rally is imminent. However, market expert Ali Martinez has provided a cautionary perspective, suggesting that ETH’s anticipated breakout might take longer than many are expecting.

Ethereum’s Bullish Prospects Could Take More Time

While Ethereum’s future looks promising, some analysts believe that it may need more time to build sufficient momentum for a major rally. Martinez argues that Ethereum could experience a period of consolidation before breaking out. He notes that the current market sentiment, particularly the behavior of long-term holders, suggests that the crypto is still in the early stages of its belief phase. This implies that while a rally could eventually materialize, it may not occur as soon as many traders anticipate.

Martinez’s analysis draws comparisons to previous market cycles when Ethereum saw significant price growth. In those cycles, Ethereum’s price surged as long-term holders transitioned from skepticism to optimism, eventually pushing the price to new heights. Currently, Ethereum has not yet reached the point where long-term holders are fully “greedy,” indicating that the cryptocurrency might not experience its next major price surge just yet.

Optimism Persists for Ethereum’s Future

Despite this warning, there remains widespread optimism about Ethereum’s future prospects. Analyst Venture founder, for example, remains bullish on the cryptocurrency, predicting that Ethereum could be on the brink of a new all-time high. His analysis is based on the current formation of a Cup and Handle pattern on Ethereum’s 3-week chart, which is often seen as a strong bullish indicator in technical analysis.

Venture founder’s projection suggests that Ethereum could see a significant price increase in the near future, with a potential target of $4,900. If this breakout occurs, the price could continue to climb, with further targets of $5,349, $6,457, and even $7,238 by the end of the first quarter of 2025. This forecast hinges on the successful completion of the Cup and Handle pattern and Ethereum’s ability to maintain the $3,800 support level.

Short-Term Weakness May Be a Concern

Although the long-term outlook for Ethereum is largely positive, short-term concerns have emerged. After reaching a high of $4,089 last week, Ethereum’s momentum seems to have slowed. The price has recently dropped back towards the $3,800 level, signaling a potential slowdown in bullish sentiment. Moreover, Ethereum’s market cap and trading volume have seen slight declines, which could be an indication of waning investor confidence.

In the face of these short-term challenges, some investors may be cautious about Ethereum’s immediate price action. A brief correction or consolidation could be on the horizon, as ETH’s price struggles to maintain its recent gains.

Conclusion

Ethereum’s path forward appears filled with both opportunities and challenges. While there is optimism in the market and technical indicators point toward significant long-term growth, market expert Ali Martinez warns that Ethereum’s next major move could take more time than anticipated. Ethereum may need to navigate through a phase of consolidation and build the necessary momentum before breaking out to new highs. Investors should stay informed and exercise patience, as the future of Ethereum remains promising, but not without potential bumps along the way.