After an incredible rally that has put Ethereum on the way to new peaks of all time, Altcoin is now faced with something that could hinder its new path. This comes down to a CME gap which had been formed by rising, and historically, the CME gaps tend to be filled before there is an increased continuation. In this case, the CME space is seated at almost 15% below its current price and could mean that the ETH is in an accident.
The CME space expects $ 4,080
An Crypto analyst stressed that the Ethereum Prize could be confronted with strong resistance after rallying at levels not seen since 2021. There is also the formation of a CME gap which threatens to slide the price before the Hard rally can continue.
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The first of them is the resistance which is currently formed in the $ 4,868 area. These are the high levels of all previous time, so naturally, the bears are starting to set up the pressure at this stage which could ultimately lead to a price rejection. There is also a potential reversal area which also plies around the $ 4,680 area.
The CME difference is very low at $ 4,185 at $ 4,080, which suggests that the price could be recovered at this level to fill the gap. If this happens, then the late long positions could be trapped as the correction takes place, before reversing its high levels of all time.
Interestingly, the analyst also highlights the fact that the Ethereum Prize seems to play the theory of Elliot waves. According to the analysis, Ethereum actually plays a microwave 5 in the meantime. What it suggests is that the current upward trend is only the beginning and that the main wave 5 has not yet started.
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Using the Elliot wave theory, wave 5 should be the final wave before the bear market. However, it is a major wave that has historically led to new heights of all time. If the bullish momentum continues, Ethereum could end up crossing the level of $ 5,000 in rapid estate.
There is also the possibility of a deeper correction if the bulls do not maintain control over $ 4,000. The analyst underlines that another CME difference should be filled as low as $ 3,417 to $ 3,461. But if the price is able to cross $ 4,800, it would be invalidated.
Dall.e star image, tradingView.com graphic
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