Current Market Situation:
- Ethereum has been hit much harder than Bitcoin recently, as shown in the charts. It is rapidly approaching its previous low with almost no bullish price action during this downtrend. The lack of upward movement signals significant selling pressure.
Bullish Scenario:
- In a bullish scenario, the support for a Wave 2 would ideally have held, allowing for a bounce. However, given the price action, this seems increasingly unlikely. The failure to hold that key support weakens the case for a Wave 2 retracement.
Bearish Scenario:
- My bearish scenario, which was posted on 28/08 on PayNews42, now appears more plausible. In this scenario, Ethereum was in Wave 4 and is now progressing through Wave 5, which aligns with the current downtrend and lack of recovery momentum.
Conclusion:
- Bearish Bias: The bearish scenario looks more likely as Ethereum shows no signs of holding support, and the structure resembles a move deeper into Wave 5.
- Next Levels to Watch: If the current low breaks, Ethereum could continue its downward trajectory, confirming the completion of Wave 5.
Let’s see how the price reacts at the support levels, but it’s important to be cautious of further downside from here.
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