Ethereum’s ATH Signals a Coming $2 Breakout for Cardano

• Ethereum broke all-time highs after a 15% dip this month.
• Back in 2021, Ethereum corrected 27% after its breakout.
• Cardano sits 249% below peak, just like last bull cycle.

Ethereum recently broke its all-time high, and while many expected a smooth parabolic move, history shows otherwise. Back in January 2021, Ethereum also cleared its previous record, only to face a sharp rejection. The coin dipped 27% right after the breakout, and just days before that rally, it had already corrected by more than 30%.

Fast forward to now, Ethereum has once again surged past its peak after dipping 15% earlier this month. The chart pattern looks almost identical to the last cycle, where Ethereum briefly overextended before pulling back into the zone between its 20-day and 50-day moving averages. This is a common setup, not necessarily manipulation but simply the volatility of crypto markets.

Related: Can Ethereum Really Hit $10,000 This Bull Cycle? Hayes Thinks It’s Inevitable

What stands out today is Ethereum’s risk score. During its January 2021 breakout, the risk score was 80, hinting overheated conditions. This time around, the score is only 59, which is considered much healthier. That shows Ethereum may have more room to run, and if Ethereum still has upside ahead, altcoins like Cardano could follow the same path as before.

Comparing Cardano and Ethereum’s Paths

When Ethereum broke its all-time high in January 2021, Cardano was still 240% away from reaching its own peak. Today, history seems to be repeating itself. Ethereum has once again broken past its previous high, while Cardano sits about 249% below its record level.

Related: Cardano’s Lace Wallet to Integrate XRP, Earns Praise & Participation from Lawyer John Deaton

On the surface, this may look like Cardano is underperforming, but the data shows it is following the same pattern as the last bull cycle.

The Bull Market Door

The analyst points to what is called the “bull market door,” a price zone that signals the transition into stronger growth. Cardano is now hovering close to that key area. Back in 2021, it was in the same position just before a sharp rally. If Cardano can push through resistance near $1.20 to $1.25, bulls could carry it quickly toward the $2 mark.

A bullish inverse head-and-shoulders pattern is forming on Cardano’s chart. Although the neckline around $1 has rejected the price once, the setup remains valid as long as Cardano holds above $0.68.

A breakout could trigger the next leg higher, bringing Cardano closer to the $2 level. From there, expect a possible run toward $3 and eventually a test of new all-time highs.

What’s ahead for ADA

If Ethereum continues into price discovery and altcoins follow as they did in the last cycle, Cardano could surge toward $2 or $3 faster than many expect.