Ethereum Bears Take Control as Technical Analysis Points to Extended Downtrend
Ethereum’s price has been struggling below the crucial $2,000 level for the past week, with mounting evidence suggesting an extended bearish phase ahead. This stark contrast to recent bullish predictions comes as technical analysts identify concerning wave patterns that could drive prices significantly lower.
Elliott Wave Analysis Reveals Bearish Pattern
According to prominent crypto analyst behdark on TradingView, Ethereum is currently forming an ABC correction pattern that began in November 2021. This technical formation suggests that ETH could experience a prolonged downward movement, potentially reaching as low as $530.
Key Technical Levels to Watch:
- Current Price: $1,930
- First Demand Zone: $1,350 – $1,080
- Second Demand Zone: $760 – $530
- Invalidation Level: $2,941
Market Implications and Trading Opportunities
While the short-term outlook appears bearish, this correction could present significant opportunities for long-term investors. The completion of Wave C typically marks the end of a major corrective phase, potentially setting up the next bull cycle.
Expert Outlook and Future Scenarios
Market analysts suggest that traders should prepare for increased volatility as Ethereum navigates these critical price levels. The completion of the current correction could set up a powerful reversal, potentially leading to new all-time highs in the next market cycle.
Source: NewsBTC