ETHUSDT Under Correction Risk

ETH Correction Needs a Base Support to Compete

ETHUSDT corrected sharply lower intraday, meeting key support at 38.20% of 1708/2011. Should this get cleared, the next base lays at 50% and 61.80%, at 2234 and 2099 – respectively.

Support at any of the above levels should ease the minor downside bias for a surge back above the local high of 2911. An ideal hold of bears could allow prices to accelerate into wave 3 of (1), likely resetting the bull run.

This move should mark the infancy stages of cycle wave III, which sees double digits in the long term.

Correction Depth Hangs on Medium-term Price Action

However, when looking at the medium-term, we could have either ended wave IV at the local crash low of 1708, or not. This sees an alternative to the above main scenario of minor wave 3 after completing a simple zigzag in wave IV: a double zigzag in wave IV.

Resistance at the 3047 or 3571 should pose a major challenge for bulls and the rigidity of the bull run as it would point to neutral-to-bearish flows into ETH.

This could end up validating a base resistance, targeting wave (X) of IV, and driving prices near the previous high of 4384 while remaining relevant.

What Levels to Keep an Eye On?

However, with the 61.80% rejecting bulls, probabilities favor the double rather than the simple zigzag as the 3047 makes a firm cluster with the base channel connecting primary waves ①-②.

To pave the way to bulls, prices could decelerate to wave ④, offering double-four support, an often seen relation between higher and lower-degree corrections.

Only then would prices have a solid low registered to revisit a bullish scenario. Until then, all eyes should remain locked on the depth of the current correction.

About the Author

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