Ethereum Price Drops 20% Amid Bearish Altcoin Market

While the Bitcoin price has remained close to its all-time highs, the Ethereum price has experienced a significant decline, putting intense bearish pressure on the altcoin market. This downward trend has triggered what appears to be a bear market for altcoins, with no signs of a bullish recovery for Ethereum. Analysts have predicted further crashes, with expectations remaining bleak at current levels.

Crypto analyst Maddox Metrics has provided a short and long-term outlook for the Ethereum price, indicating that the current market decline is far from over. In the short term, Maddox expects the Ethereum price to continue falling below major support levels. The analyst explains that investors are already anticipating the ETH price to drop toward the $1,900 target, which would be the second wave of the 5-wave count as Ethereum moves into its long-term potential.

Despite significant buying, particularly among institutional investors, the Ethereum price continues to trend low. The analyst attributes this to rising war tensions in the Middle East, as fears of a broader conflict intensify. At this level, the analyst advises investors to adopt a more patient strategy, emphasizing that "Money is made in the sitting, weathering volatility, not flipping in and out of trades on every bit of news and price movement." Therefore, it is better to hold positions until the market stabilizes.

Despite the wave pattern indicating a crash below $2,000 in the short term, the long-term outlook for the Ethereum price remains bullish. The current decline, which is a Wave 2 retracement, marks the end of a motif wave at the $2,700 resistance. This suggests that once the current wave ends, the next wave, which is the bullish Wave 3, will begin. According to the analyst’s chart, this wave could carry through to a new all-time high just under $5,000.

The 4th wave is naturally bearish and will trigger a crash, while the 5th and final wave will send the Ethereum price to $7,000. The timeline for this to happen, as shown in the chart, will be through the year 2025 and into the early months of 2026. This long-term bullish outlook provides a glimmer of hope for Ethereum investors, despite the current market challenges.