Ethereum Dips to Recent Purchase Zone as Traders Eye Wave Pattern

Ethereum is currently valued at around $2,850, witnessing a 1% increase over the last 24 hours but showing a 10% decline over the past week, with trading volumes hitting $23.8 billion for the day.

Repeating Wave Structure

Analyst Merlijn The Trader indicates a recurring price pattern on Ethereum’s two-week chart, consisting of three stages: an initial rally, followed by a corrective dip, and finally a breakout. At present, Ethereum is in the second phase.

ETHEREUM: THE PERFECT WAVE SETUP
Wave 1: Ignition
Wave 2: Correction (currently happening)
Wave 3: Expansion (expected next)

This pattern has been observed three times previously where Ethereum saw a price surge.

Notably, Merlijn The Trader emphasized:

“You know what to do in the discount zone. Source

The structure recurring since 2022 has primarily followed an ascending channel, and the current drop correlating from $4,950 to the $2,600–$2,800 range is reminiscent of earlier corrections.

Support and Reversal Zones Under Scrutiny

Lennaert Snyder remarked on Ethereum’s struggle to stay above $2,880, which triggered a short strategy. He highlighted the $2,680 level as a key point for long positions, also noting a demand zone around $2,570 where rebound possibilities may arise.

Recent reporting by CryptoPotato pointed out that $2,872 corresponds with realized price data, establishing it as a classic low point based on on-chain analysis.

ETH/BTC Performance in Focus

Michaël van de Poppe has been observing Ethereum’s performance against Bitcoin, indicating that the ETH/BTC pair currently trades around 0.0325, a significant base formation point. If support is retained at this level, Ethereum might overtake Bitcoin.

Michaël van de Poppe states:
“If ETH finds support here, it could outperform BTC. If not, the entire market may move lower.”

Recent developments call for traders to keep a close watch on these pivotal levels as the market may experience reversals.