Has the Decline of Ethereum (ETH) Ended?
Despite its strong fundamentals and negative inflation, the king of cryptocurrencies is not performing as expected. While many altcoins have surged several times since their November lows, Ethereum has failed to sustainably stay above $2,000 despite significant updates and increasing demand. So, what can we expect in August? What do the latest data promise to investors?
The price of Ethereum (ETH), which reached the highest level of the year on July 14, has been declining since then. The price has made a significant bounce at a support level but has not yet confirmed the direction of the trend. Wave counting indicates that the price has reached or will soon reach the bottom. The short-term price movement supports this possibility by creating a higher low.
According to Elliott Wave analysis, the price of ETH has completed a five-wave uptrend. The price is currently experiencing a corrective ABC structure. It is currently seen in the C wave, which will complete the correction. The probability of an uptrend indicates that the correction has been completed, supported by the fact that the ETH price has bounced from $1,825 at the 0.5 Fibonacci retracement support level.
ETH Chart Analysis
The short-term 30-minute chart analysis mostly suggests a bullish outlook. The main reason for this is the bounce at the 0.618 Fibonacci retracement support level. In corrective declines, the 0.618 level often acts as a bottom. Furthermore, it has created a long lower wick, which is considered a sign of upward buying pressure, compared to the last low on July 24. Additionally, a higher peak level has formed.
Therefore, there is a high likelihood that the correction has already been completed. If the expected scenario occurs and the uptrend resumes, we can expect a roughly 7% increase towards the highest level of July at $2,000.
Despite the current bullish outlook, ETH’s closing below $1,848 will indicate that the correction has not yet ended. Then we may see the altcoin king falling to the $1,780 support zone.
This week, significant data will be released, and the resolution of Genesis’ bankruptcy case payment plan is expected. The next few hours will be critical for ETH and other altcoins.
