Ethereum’s (ETH) 45% drop sets the tone for greater upside this cycle

Ethereum falls 45% since the ATH to $2,650 and enters the key support zone. Analysts now expect a new wave targeting $8,800 if support holds.

The daily volume is $50.3 billion. Ethereum is down 10% in the past 24 hours and almost 15% in the past week. This move has taken ETH into areas where interest from previous buyers was high.

Structure shifts to wave 2

StockTrader_Max posted an updated Elliott Wave count showing that ETH has broken through its previous Wave 1 range. This rules out a Wave 4 correction and suggests a Wave 2 retracement is now underway. These types of pullbacks usually occur earlier in a cycle.

“ETH is already at the 0.618 FIB… this is an area where I expect low form,” the analyst noted.

Notably, the 0.618 retracement level is around $2,748. It often acts as support in trend markets. Based on this count, the next move – Wave 3 – could target $8,800. That replaces a previous estimate of $6,000 for the end of Wave 5.

Price is approaching key support zone

Bleeding Crypto shared a chart showing ETH within a wide Fibonacci support zone. This area includes the 0.618 level at $2,748, the 0.706 level at $2,433 and the 0.786 level at $2,147. These zones correspond to a price range where ETH was trading sideways earlier this year.

The decline has brought ETH back within this previous consolidation range. Such a structure has provided support in the past. The correction is deep, but within the range of previous cycles. If it remains active in this area, it could provide a base for future relocations.

Moreover, Ash Crypto posted that Ethereum has now filled a CME gap on the daily chart. It remained open for about four months and cost between $2,850 and $3,000.

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“Most gaps in CME are filled before any major move is made,” the post said.

Meanwhile, some traders consider this a technical move that is often completed before a trend shift occurs. The price is now in a key area and watching volume and structure will be important in the next sessions.

$2,800 flips from support to resistance

Ted pointed out that ETH has fallen below $2,800 and reached $2,650.

“If ETH does not regain the $2,800 level soon, expect a decline towards the $2,500 level,” he wrote.

This zone is also where the realized prices of different portfolio groups come together. That adds weight as an important level. If the market holds this range, it could provide a short-term bottom. If that is not the case, lower goals remain in sight.