Ethereum News: Could a $3,800 Correction Come Before a New ATH?

Ethereum is making some interesting moves that have traders drawing parallels to Bitcoin's explosive 2020 cycle. While ETH has broken out of a key technical pattern and is showing strength, history suggests we might see a pullback before the real fireworks begin. Understanding these patterns could help investors position themselves for what might come next in Ethereum's journey toward new highs.

ETH Price Action Mirrors Bitcoin's Cycle

Ethereum has just broken free from a major wedge pattern on the monthly timeframe and is currently sitting around $4,271. This breakout looks remarkably similar to what Bitcoin did back in 2020, and that's got people paying attention.

Here are the key levels traders are watching:

Immediate resistance: $4,400–$4,500 Potential correction zone: $3,800–$3,900 (roughly 20% down from recent peaks) Long-term bullish target: Above $5,000 for new all-time highs

This pattern of breaking out, pulling back, and then surging higher is exactly what Bitcoin did in its last major cycle. For smart money, a drop to that $3,800–$3,900 range could be the perfect buying opportunity before Ethereum's next parabolic run.

ETH Price Outlook: Short-Term Volatility, Long-Term Growth

If Ethereum does pull back to that $3,800–$3,900 zone, most analysts see it as a gift rather than a problem. It would likely set up another buying opportunity before ETH makes its push toward $5,000 and beyond.

On the flip side, if ETH skips the correction entirely and powers straight through resistance, we could see momentum build even faster than expected.

The fact that this setup mirrors Bitcoin's previous cycle adds serious credibility to the bullish case. With Ethereum's growing dominance in DeFi, the rise of staking, and increasing institutional adoption, ETH looks well-positioned for the next major leg up in this crypto bull market.