Ethereum’s CME Gap Looms: Is a $4,080 Crash Inevitable?

Ethereum bulls beware—the CME gap is flashing warning signs. Could this technical anomaly trigger a violent rejection toward $4,080?

The Ghost in the Trading Machine

CME futures gaps have a nasty habit of filling eventually. Ethereum's current precarious position suggests traders might soon learn this lesson the hard way.

Liquidity Hunters Circling

Market makers smell blood in the water. That gap below current levels acts like a magnet—and retail traders are about to become the liquidity buffet.

Institutional Poker Face

While crypto Twitter screams 'buy the dip,' smart money quietly loads short positions. Nothing personal—just another Tuesday in the casino we call finance.

The CME Gap Waiting At $4,080

A crypto analyst has pointed out that the ethereum price could be facing heavy resistance after rallying to levels not seen since 2021. There is also the formation of a CME gap that threatens to drag the price back down before the bullish rally can continue.

The first of these is the resistance that is currently forming at around the $4,868 zone. This is the previous all-time high levels, so naturally, bears are beginning to mount pressure at this point that could ultimately lead to a price rejection. There is also a potential reversal zone skirting around the $4,680 area as well.

The CME Gap is sitting very low at the $4,185-$4,080, suggesting that the price could retrace to this level to close the gap. If this happens, then late long positions could be trapped as the correction plays out, before reversing toward its all-time high levels once more.

Interestingly, the analyst also points out the fact that the Ethereum price seems to be playing out the Elliot Wave Theory. According to the analysis, Ethereum is actually playing out a microwave 5 in the meantime. What this suggests is that the current uptrend is only the start, and that the main Wave 5 is yet to begin.

Using the Elliot Wave Theory, Wave 5 is expected to be the final wave before the bear market. However, it is a major wave that has historically led to new all-time highs. If the bullish momentum does continue, then Ethereum could end up crossing the $5,000 level in quick succession.

There is also the possibility of a deeper correction if bulls fail to maintain control above $4,000. The analyst points out that another CME gap is left to be filled as low as $3,417-$3,461. But if the price is able to cross toward $4,800, this WOULD be invalidated.