Ethereum Faces Potential Drop to $4,080 Due to CME Gap
Ethereum's recent rally faces potential setbacks due to a CME gap near $4,080. Historically, these gaps are often filled before further bullish movements.
CME Gap and Resistance Levels
- The CME gap is located between $4,185 and $4,080, indicating a possible price retracement.
- Current resistance is forming around $4,868, the previous all-time high, which may lead to price rejection.
- A reversal zone exists at approximately $4,680.
Analysts suggest that if the price retraces to fill the CME gap, late long positions could be at risk. However, this correction might precede another upward move towards new highs.
According to the Elliott Wave Theory, Ethereum is currently in a minor Wave 5, potentially setting the stage for a significant uptrend. If bullish momentum persists, Ethereum could surpass $5,000.
Should bulls fail to maintain above $4,000, a deeper correction may occur, with another CME gap identified between $3,417 and $3,461.
