After an incredible rally that placed Ethereum on the path to new and greatest possible history, Altcoin is now facing something that could hinder new passes. This results in the CME gap formed along the way, and historically, CME gaps tend to be filled before there is a bullish continuation. In this case, the CME gap is almost 15% below the current price, which could mean that ETH is crashing.
CME Gap is waiting for $4,080
Crypto analysts point out that Ethereum prices could be facing heavy resistance after combining to levels not seen since 2021. There is also the formation of a CME gap that could pull prices back before bullish gatherings continue.
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These first are resistances that are currently forming in the $4,868 zone. This is the highest level ever before, so naturally, bears are beginning to put pressure on them at this point, which could ultimately lead to price rejection. There is also a potential inversion zone that slides around the $4,680 area.
The CME gap sits very low, between $4,185 and $4,080, suggesting that prices can be raised to this level and fill the gap. If this occurs, when the correction is regenerated, it could potentially trap a slow, long position when it reverses to the highest level ever.
Interestingly, analysts also point out the fact that Ethereum prices appear to develop the theory of Elliott waves. According to the analysis, Ethereum actually plays the Microwave 5 in the meantime. What this suggests is that the current uptrend is just the start and Main Wave 5 has not yet begun.
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Using Elliott Wave theory, wave 5 is expected to be the final wave in front of the bare market. But it is the major wave that has led to a historically new history. If bullish momentum continues, Ethereum could quickly and consecutively surpass the $5,000 level.
There is also the possibility of a deeper correction if the Bulls are unable to maintain control over $4,000. Analysts point out that another CME gap will fill a low of $3,417 to $3,461. However, if the price can range to $4,800, this will be void.
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