Ethereum and Cardano Continue Sliding As Market Corrects; Arthur Hayes Sees $20K ETH Ahead

The crypto market is witnessing significant price declines, with top altcoins like Ethereum and Cardano suffering heavy losses. The Ethereum price has broken the $4,300 support, but analysts are hopeful that the current correction will end soon. 

The co-founder of the exchange BitMEX, Arthur Hayes, has predicted a potential future Ethereum price between $10,000 and $20,000 in this bull cycle. Cardano is also feeling the heat, dropping below the critical $0.8500 support level, but analysts have predicted a surge back above the $1 mark.

Ethereum (ETH) Drops Under $4,300 Support, But Analysts Remain Optimistic

After failing to crack the $4,800 resistance on the weekly timeframe, the Ethereum price has suffered a steep correction. Falling by more than 7% on the 1W chart, the price of Ethereum has plunged below the critical support level at $4,300.

Although ETH appears to be forming lower lows on the 4H timeframe, analysts have predicted that the Ethereum price will continue its rally soon. Arthur Hayes, in a recent interview, said that the Ethereum price could reach a high between $10,000 and $20,000 in this bull cycle. 

According to Hayes, the Ethereum price must first convincingly clear its current all-time high before making the leap. Hayes, who sold $13.35 million in digital assets early in August, has been buying back ETH, which he believes will outperform even Solana in this cycle.

The growing institutional support for Ethereum, with the likes of BitMine going all out to purchase ETH, is one of the major reasons why he believes ETH will soar in this bull market. Corporate ETH holdings have surged to new highs, with Tom Lee’s BitMine now holding $6.6 billion worth of Ethereum.

DBS Bank, the largest bank based in Singapore, recently launched tokenized structured notes on the Ethereum public blockchain. With the massive trend that tokenization is shaping up to be, analysts believe that this could be one of the trends that ignites an Ethereum price rally. 

Cardano (ADA) Seize Downtrend To Increase Positions

Just like the rest of the market, Cardano (ADA) has suffered a steep decline, dropping from a weekly high of $0.98 to trade below the $0.850 support. Whales have seized this Cardano price drop as an opportunity to continue to accumulate ADA tokens. 

According to data presented by Ali_Charts, Cardano whales have bought more than 100 million $ADA. 

While whales believe that a Cardano price reversal is around the corner, unless bulls force a reversal above the critical support level at $0.8500, the ADA price could continue sliding down. This is because ADA now appears to be forming lower lows on the 4H chart.

With volatility tightening, the Cardano price could retest the $0.83 support level if bulls don’t force a recovery above $0.860. Despite the current decline, the pseudonymous analyst, Mr Banana, is optimistic, asking if investors bought the dip.

He stated that the bullish canal/channel is forming on the Cardano price chart. The analyst argued that a break above the $1 resistance could see the Cardano price proceed to rally towards the $1.15 mark.

Bottomline

Although the market correction has been uncomfortable, taking ETH and ADA below key support levels, the bigger bull cycle debate is still ongoing. Arthur Hayes’s $20K ETH call underscores the view that the bull market is still in play, and Ethereum’s growing adoption among institutions could push its price to new territories.