Ethereum’s $1,800 Danger Zone: Brace for a 30% Plunge as Bears Take Control

Ethereum isn't safe yet—despite whispers of a comeback, the charts scream trouble. A brutal 30% nosedive could send ETH crashing to $1,800, wiping out hopeful traders who bought the dip too soon.

Here's why the bleeding isn't over.

The Technical Trap

Key support levels shattered like a DeFi protocol with unaudited code. The 200-day moving average? A distant memory. Now, Ethereum's flirting with a bearish formation that historically precedes double-digit drops—and this time, macro headwinds are fanning the flames.

Liquidity Exodus

Whales are quietly dumping bags while retail investors meme about 'buying opportunities.' Exchange reserves are swelling—a classic precursor to cascading liquidations. Even staking yields can't paper over the panic when leverage gets unwound.

The Silver Lining (For Vultures)

Another 30% crash would put Ethereum at levels not seen since the last crypto winter. Perfect for hedge funds to scoop up cheap assets—after they finish shorting it to oblivion, of course. Just another cycle in the casino… sorry, 'free market.'

Why Ethereum Could Still Drop To As Low As $1,800

In an X post, Crypto Wave declared that the primary expectation remains that Ethereum will see one more leg down in wave c of wave 2, targeting the zone between $1,950 and $1,700. Specifically, his accompanying chart showed that the largest altcoin by market cap could drop to around $1,800. 

The crypto analyst revealed that Ethereum has already hit the 0.5 fib retracement at $2,100, which is the minimum target for a Wave 2 correction. However, structurally, he claimed that this drop still looks like wave A only. Crypto Wave further explained that these ABC corrections are always three-part moves, and that is what he sees forming now for ETH. 

The broader crypto market, led by Bitcoin, has bounced back following the ceasefire between Israel and Iran. Ethereum has also rebounded, having dropped to as low as $2,100 last week. However, Crypto Wave suggested that the current market sentiment doesn’t invalidate this bearish setup for ETH and that it could still witness a deeper sell-off. 

The crypto analyst alluded to the fourth quarter of last year when Ethereum was underperforming heavily while many altcoins rallied. In line with this, he remarked that there could be a repeat of this scenario. However, on the other hand, Crypto Wave claimed that if ETH breaks above $2,880 impulsively, especially in one clean wave, then the correction could be over. He added that this WOULD also put the altcoin in the early stages of a new bull cycle.

2021 Pattern Playing Out For ETH

In an X post, crypto analyst Merlijn drew similarities between the current ethereum price action and that of 2021. He stated that the 2021 playbook is repeating, with ETH having a dead count bounce, then a final retest before the parabolic leg. The analyst expects the altcoin to retest the $2,000 level before the massive move to the upside. 

His accompanying chart showed that Ethereum could rally to as high as $11,000 on this uptrend. Merlijn had remarked that ETH has more firepower this time around than in 2021, which is why the altcoin could witness such a parabolic MOVE to the upside. Interestingly, based on the chart, this rally is expected to happen between now and year-end.

At the time of writing, the Ethereum price is trading at around $2,480, up over 2% in the last 24 hours, according to data from CoinMarketCap.