Ethereum (ETH) Price Cools Off — Offers Second Chance After 80% Rally

The price of Ethereum has increased gradually since April 7. On May 10, the movement became parabolic, leading to a 50% weekly increase.

Ethereum even outperformed Bitcoin (BTC) during this time, which has rarely happened in the current cycle, where ETH has lost over 70% of its value against BTC.

While a short-term retracement is overdue, let’s examine the long-term movement to see how this fits into the bigger picture.

ETH Rally Ends

Ethereum’s price has completed a five-wave upward movement with an unusually extended wave five since April 7.

While the movement became parabolic on May 10, it has lost some momentum this week, becoming much more gradual.

Furthermore, technical indicators are showing weakness. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) created bearish divergences, a characteristic of wave five tops.

If the analysis is accurate, the ETH price has started an A-B-C correction (red), which can end at three support levels.

An extremely shallow retracement would reach the $2,420 area, a Fibonacci and horizontal support.

A deeper retracement could bring the $2,220 and $2,060 levels into play, coinciding with an ascending parallel channel.

Because of the highly extended wave five, it is unlikely that Ethereum’s price will fall below $2,060 without invalidating the count.

What’s Next for Ethereum?

A look at the long-term wave count suggests that the ongoing increase is a relief rally, since it follows a five-wave decline (red).

If the count is accurate, the ETH price is at the top of wave A in an A-B-C structure (green).

Thus, after the predicted retracement, the price will begin another upward movement, taking it between $3,066 and $3,526.

Afterward, Ethereum’s downward trend that started in December 2024 will likely resume.

Bearish Long-Term Trend

While Ethereum’s increase in the past week is impressive, it does not invalidate its long-term bearish trend.

The most likely short-term analysis suggests ETH will retrace toward a maximum of $2,060 before rallying again.

Nevertheless, Ethereum’s price is unlikely to reach a new all-time high this cycle.

About the Author

Valdrin Tahiri

Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.

He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.

Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.

He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.

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