Ethereum bulls have managed to print yet another all-time high at $2546 yesterday, before pulling back. The crypto seems to have carved a meaningful top and might be looking to produce a corrective drop towards $1600 levels at least.
Looking at the wave structure since March 2020 lows registered at $89.50, Ethereum seems to have completed/terminated larger degree Wave (3) at $2546 yesterday. If correct, bears might be poised to drag prices lower towards $1600 and up to $1300 levels in the near term.
Also note that fibonacci 0.382 retracement of Wave (3) is seen to be passing through $1600 mark; while previous Wave 4 termination was around $1300 levels respectively. Hence probabilities remain for Wave (4) to terminate around $1300-1600 zone.
The crypto is expected to turn higher thereafter, towards fresh highs above $2546, as Wave (5) begins to unfold. It would probably be the last rally to complete 5 waves at a larger degree and Ethereum might reverse lower in a big way.
At the moment, the focus remains on potential Wave (4) termination towards $1600 mark. Immediate price resistance is seen at $2546, while intermediate support is seen around $2000 levels respectively. A break below $2000 would certainly confirm that Wave (4) is underway.
Ethereum bulls might take a break for the next few weeks as the crypto retraces lower towards $1600 mark. Watch out for a break below $2000 initial support to confirm further downside.
Finacademy Technical Team
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