Ethereum’s price trajectory has recently ventured into the negative territory, with the cryptocurrency trading slightly above the $3,200 mark. At present, Ethereum has experienced a sell-off of approximately 25%, positioning its current value around $3,300, which represents a 20% decline from its recent cycle peak. Although a definitive confirmation is pending, the presence of higher lows and lower highs indicates a potential breakout in either direction. The broader trend remains optimistic, suggesting that the current price activity might be a temporary correction within a larger upward trend.
Bitcoin’s Market Influence
Bitcoin continues to exert significant influence in the cryptocurrency market, maintaining a dominance level of 58%. However, this dominance is beginning to wane, which could be beneficial for Ethereum and other altcoins seeking to strengthen their market positions.
Key Resistance Level to Monitor
Ethereum is currently encountering critical resistance in the range between $3,370 and $3,613. Surpassing this threshold would indicate the conclusion of the correction phase and potentially herald the commencement of a new bullish trend.
Short-Term Bearish Scenarios
- Wave Structure Analysis: There is a possibility that Ethereum is adhering to a corrective wave pattern, potentially forming a five-wave decline. This scenario suggests a short-term bearish outlook. Nonetheless, as long as Ethereum remains above the $2,400 level, the overarching uptrend could persist.
- Impact of Altcoins: Numerous altcoins are exhibiting signs of weakness, which might exert additional downward pressure on Ethereum’s price.
Triangle Pattern Possibility
Ethereum may also be shaping into a triangle pattern. If this pattern materializes, further sideways movement could precede a breakout. A breakout above the $3,613 mark would indicate the formation of a bullish triangle pattern, potentially paving the way for a robust upward surge.
Prospective Bullish Scenario
Ethereum could potentially be in a “one-two” setup, with a possible bottom already in place. In the event that Ethereum surpasses the $3,613 level, it would negate the bearish scenario and heighten the probability of a bullish breakout, further enhancing investor confidence in the cryptocurrency’s upward potential.
