Ethereum bulls had managed to produce a religious uptrend since March 2020 lows registered at 89.50 levels. The entire rally between 89.50 and 2040.00 also seems to have infolded into 5 waves as labeled here. The crypto might be preparing for a corrective drop soon.
Ethereum might have carved a potential top at 2040.00 marks and might be preparing to resume lower again after having bounced off 1300 mark earlier. The crypto is trading around 1785 as we prepare to publish this update and bears are looking poised to take control back.
Also, note that 1300 was Fibonacci 0.382 retracement of the entire rally between 89.50 and 2040.00 levels respectively. If an A-B-C correction is underway, Ethereum bears must be inclined to drag prices through 800/30 levels, going forward.
It should be noted that 835 level is the Fibonacci 0.618 retracement of the entire rally described above and probabilities remain high for a bullish bounce if prices manage to reach there. Furthermore, a one-year-old trend line support is also seen to be passing through 800 zones.
Only a break below the trend line support will be considered to be further bearish for Ethereum and it could open doors for a slip through 500.00 marks. A larger degree Wave ((4)) seems to be underway towards 835 levels.
The above structure is valid only until Ethereum manages to stay below 2040.00 levels. A push above that will confirm that Wave ((4)) already terminated at 1300.00 larks and that Wave ((5)) is underway towards higher levels.
Finacademy Technical Team
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