Ethereum’s price has taken a dip into the red zone, following the trend of other top 10 coins. Currently, ETH is down by over two percent and is hovering just below the $3300 mark as of the latest update.
Long-Term Analysis: Approaching the End of the Cycle
Taking a deeper look at Ethereum’s long-term chart, analysts have identified an Elliott Wave pattern that can provide insights into market sentiment. While this analysis is somewhat subjective, the use of Fibonacci levels and support areas adds a layer of objectivity to the assessment.
Ethereum is currently in an upward trend and may be nearing the end of a larger cycle. Having completed Waves 1, 2, 3, and 4 since the low in 2018, Ethereum could potentially be approaching Wave 5, indicating a potential peak for the trend. However, it is important to note that a higher high compared to the peak in 2021 still needs to be established.
Momentum Weakening: Signals of Exhaustion
Recent price movements have shown a weakening momentum compared to earlier waves. While Waves 1 and 3 exhibited strong and aggressive price movements, Wave 5 is displaying signs of diminishing strength, which is a common occurrence towards the end of a cycle. This could signal the final phase of the bull market, where trading Ethereum becomes more challenging and risks increase.
Corrective Phase: Watching Support Zones
Ethereum’s price is currently in a corrective phase, with a potential Wave 2 forming in an ABC structure. As long as the support levels between $2,470 and $3,167 remain intact, there is still a possibility of higher prices. The target for this rally is ideally set at $3,572.
Bearish Shift: Key Support Breaks
However, if Ethereum’s price breaches the $2,470 support zone, the outlook may turn bearish. At present, the market is still in a corrective phase, but a breakthrough above crucial resistance levels, particularly between $3,415 and $3,648, will confirm whether a more bullish trend is emerging.
In conclusion, Ethereum’s price movement is currently at a critical juncture, with potential signals of exhaustion and the possibility of a trend reversal on the horizon. Traders and investors should closely monitor key support and resistance levels to gauge the direction of the market in the coming days.