Ethereum price has currently drifted into the red zone and the price is slightly trading above the $3200 levels. As of now, Ethereum has sold off by about 25%, and its current price is around $3,300, marking a 20% drop from its cycle high.
While confirmation is not yet complete, higher lows and lower highs suggest a potential breakout in either direction. The broader trend remains bullish, and the current price movement appears to be a correction within that larger uptrend.
Bitcoin remains the dominant force in the market, holding 55% dominance. However, Bitcoin’s dominance is starting to cool off, which is positive for Ethereum and altcoins.
Resistance Level to Watch
Ethereum faces important resistance between $3,370 and $3,613. A breakout above this range would signal the end of the correction and could indicate the start of a new bullish trend.
Short-Term Bearish Scenarios
- Wave Structure: One possible bearish scenario is that Ethereum could be following a corrective wave pattern, with a potential five-wave decline forming. However, this would be a short-term bearish outlook. As long as Ethereum remains above $2,400, the overall uptrend could still continue.
- Altcoins Impact: Many altcoins are showing signs of weakness, which could put additional pressure on Ethereum’s price.
Triangle Pattern Potential
Ethereum may also be forming a triangle pattern. If this is the case, more sideways movement may occur before a breakout. A breakout above $3,613 would suggest the development of a bullish triangle pattern, potentially leading to a strong upward move.
Bullish Scenario
Ethereum might be in a “one-two” setup, with a potential bottom already established. If Ethereum breaks above $3,613, it would invalidate the bearish scenario and increase the likelihood of a bullish breakout.
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