Ethereum Faces 30% Crash Risk Amid Bearish Wave Pattern

Ethereum has been struggling to maintain its price above $3,000, despite Bitcoin's price hovering near its all-time highs. The market sentiment for Ethereum remains bearish, with sell-offs dominating the current price levels. While some analysts predict a potential relief rally due to the accumulation of shorts, there is also a significant possibility of a price crash from these levels.

Crypto analyst Weslad has mapped out the potential trajectory of Ethereum's price using the ABCDE wave structure. According to this analysis, Ethereum's price could crash below $2,000. The analyst points to the 2021 peak of Ethereum, when the price reached $4,851, as the formation of a large-scale symmetrical pennant. This pattern has continued to play out over multiple years and is expected to persist until 2025. Weslad believes that Ethereum has been in a long-term accumulation phase within a defined corrective range.

Another critical development is the formation of an ABCDE wave pattern, which often predicts peaks and troughs in asset prices. Currently, the Ethereum price is believed to be in the D wave of this pattern, which is still bullish for the price. If the D wave plays out as expected, the Ethereum price could surge above $3,500 before the move is completed. Additionally, the formation of an Inverse Head and Shoulders Pattern suggests that if the price sustains a break above the key resistance level of $2,855, it could rally to new all-time highs above $6,000.

However, the ABCDE wave count also indicates a potential bearish scenario. After the completion of the D wave, the next wave in the sequence is the E wave, which is bearish. A temporary rejection at the neckline or pennant resistance could trigger an E wave retracement, leading to an over 30% crash in the Ethereum price. This could push the price back toward the $1,400-$1,800 level, where there is significant support. Recent price behavior shows compressed volatility and increased buying interest on dips, reinforcing the possibility of an imminent directional breakout. A decisive move outside this macro structure may mark the beginning of a new phase of long-term price expansion.