Since its transition to proof-of-stake in September 2022, Ethereum has struggled to regain its previous momentum.
While Bitcoin has reached new highs, Ethereum has lagged significantly.
If Ethereum fails to break above its 2023 highs, we could see a move down to $600 — a level that would represent a full retracement of its major gains.
The structural issues following the proof-of-stake shift are a red flag, and if you hold significant Ethereum positions, it’s worth reevaluating your strategy.
Altcoins and the Pain Ahead
Altcoins, particularly those outside the top 10, are in for a rough ride. During the next correction, I expect significant pain in smaller-cap coins.
Many of these so-called “crap coins” or meme coins could see sharp declines as liquidity dries up. Even within the top-tier altcoins, I’m cautious about projects that lack real utility or staying power.
For example, XRP (XRP) and Solana (SOL) both have potential, but their trajectories are heavily dependent on market sentiment and the broader macro environment. Solana could break out alongside Bitcoin’s next rally, potentially reaching new highs, but XRP may have already played its hand.
Crypto’s Cyclical Nature and the Long-Term View
Crypto is a unique asset class, and it cannot be directly compared to gold or any other traditional financial instrument. It follows a distinct cyclical pattern — one driven by human psychology and Bitcoin’s halving events every four years.
While it’s possible this cycle could deviate slightly from historical norms, the probability of a full-blown crypto winter in 2026 remains high.
I mentioned we’re likely to see Bitcoin retrace to levels around $30,000–$40,000.
However, this will set the stage for the next halving run in 2028, which could propel Bitcoin to $400,000 or higher likely making that top sometime in 2029.
Ethereum and other altcoins will follow similar patterns, though their ultimate recovery will depend on how well they adapt to market conditions.
Plan for the Future — but Stay Flexible
As always, these are just projections and not guarantees.
The market can and will surprise us. However, by understanding the patterns and preparing for both the opportunities and risks ahead, you can position yourself to navigate the crypto market with confidence.
Keep an eye on Bitcoin’s $70,000–$80,000 correction zone as a potential buying opportunity, and be cautious with leverage and altcoins that lack clear staying power.
Crypto trading can be lucrative, but it’s also incredibly risky, especially if you’re messing around with meme and crap coins.
Leverage amplifies these risks, and understanding the fine print — from ETF prospectuses to liquidation criteria — is non-negotiable. Crypto’s decentralized and fragmented nature adds complexity, making it easy to misstep.
History shows that every major rally is followed by sharp corrections. Plan for downturns, set realistic profit targets, and establish clear stop levels.
Stick to high-probability setups, keep it simple, and always trade with discipline to navigate this volatile market successfully. |