- Leading on-chain analyst and investor argues that Ethereum could plummet lower and break down before the altcoin begins its recovery.
- Bitcoin capitulation could be followed by Ethereum, before the asset begins its fifth wave and makes a massive comeback.
- Analysts are bullish on Ethereum recovery after a price drop in the asset.
Though Bitcoin price dropped in the recent downtrend in the cryptocurrency market, analysts believe Ethereum could decline further before the altcoin’s trend reverses. Ethereum price could plummet ahead of Bitcoin’s fifth wave according to a leading cryptocurrency analyst.
Ethereum could suffer negative impact before recovery
In the market-wide cryptocurrency bloodbath, Bitcoin price suffered a negative impact. Analysts believe Ethereum capitulation could occur before a trend reversal. The recent drop in Bitcoin price is considered a precursor to a price rally in the asset, according to the Elliottwave Theory.
Ethereum price has sustained above its key psychological level at $2,000. The short to medium-term outlook on Ethereum is bearish. The altcoin’s price could plunge to support at $1,930 before a trend reversal in Ethereum.
The recent steep decline in the altcoin’s price was derived from Ethereum’s correlation with Bitcoin and the bloodbath in US tech stocks and equities.
With the recovery of US Stock indexes and Bitcoin price, Ethereum is on track to make a comeback. @CredibleCrypto, a crypto analyst and trader, evaluated the Ethereum price trend and noted that Bitcoin dominance will hit major support.
Ethereum price against Bitcoin is yet to break down and make its way to the red line, since capitulation is expected to occur in BTC. According to the analyst, the drop in Bitcoin price could have been a precursor of a massive pump or dump, and Ethereum could witness a bullish reversal ahead of Bitcoin’s fifth wave, based on Elliottwave Theory.
The theory implies that the fifth wave of the asset would be a significant rally, pushing BTC higher than its previous all-time high.
BTC dropped, but $ETH/BTC still didnt break down Still expecting ETH/BTC to make it’s way to the red line, but if capitulation on BTC didn’t do it, what will? Imo this drop on $BTC wasn’t our “major” pump or dump- it was the precursor to it. The precursor to our 5th wave. $BTC https://t.co/2rHA2qzg6e pic.twitter.com/2f8ZnCHk7E
— CrediBULL Crypto (05.27) (@CredibleCrypto) May 13, 2022