Ethereum’s price has been stuck below $2,000 for a week, and it doesn’t look like it’s going to recover anytime soon. Things have been tough since early March, with sellers dominating the crypto market.
Elliott Wave Theory Predicts Continued Bearish Trend
Interestingly, some technical analysis using Elliott Wave theory suggests this bearish trend will continue. This analysis shows Ethereum forming an “ABC correction pattern,” which usually means more downward movement.
Understanding the ABC Correction Pattern
This pattern, which has been unfolding since November 2021, consists of three waves:
- Wave A: The initial price drop.
- Wave B: A temporary bounce back.
- Wave C: The final and often most significant downward leg, usually extending beyond Wave A.
We seem to be nearing the end of Wave B. Once it’s finished, Wave C will begin, extending the current bearish trend. The analyst predicts Wave C will last longer than Wave A, potentially pushing the price down to between $760 and $530.
Potential Market Bottoms for ETH
The analyst identified two potential “demand zones” where the price might find support:
- Demand Zone 1: $1,350 – $1,080. If this zone fails to hold, the price could fall further.
- Demand Zone 2: $760 – $530. A drop to this level would likely be very bearish, but could also be a good buying opportunity for those anticipating a future price increase.
Invalidation Level: $2,941
However, there’s a potential escape route. If Ethereum closes a day above $2,941, the bearish prediction would be invalidated. Given the current price of around $1,930, this seems unlikely in the near future.
