The Ethereum price has drifted into the red zone along with the majority of the top 10 coins. ETH is down more than two percent and is trading slightly below the $3300 level at the time of writing.
Long-term analysis: the end of the cycle is approaching
Looking at the long term chart of Ethereum, the market follows an Elliott Wave pattern, which helps in analyzing the market sentiment. While the analysis remains somewhat subjective, Fibonacci levels and support areas add an element of objectivity.
Ethereum is currently in an uptrend and may be nearing the completion of a larger cycle. After forming Waves 1, 2, 3 and 4 since the 2018 low, Ethereum could be approaching Wave 5, signaling a possible top for the trend. However, a higher high has yet to form compared to the 2021 peak.
Momentum weakening: signals of exhaustion
Recent price action shows weaker momentum compared to previous waves. Waves 1 and 3 saw aggressive price movements, but wave 5 shows signs of waning strength, which is typical of the end of a cycle. This could indicate the final phase of the bull market, where tracking and trading Ethereum becomes increasingly difficult and risk levels rise.
Corrective phase: View support zones
Ethereum price is still 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 hold, higher prices are still possible. The ideal target for this rally is $3,572.
Bearish Shift: Major Support Breaks
However, if Ethereum price falls below the $2,470 support zone, the outlook will turn bearish. For now, the market remains in a corrective phase, but a move above the key resistance levels, especially between $3,415 and $3,648, will confirm whether a more bullish trend is forming.
Credit : coinpedia.org
