Ethereum's Rebound Facade: Is the True Bottom Hidden at $440?

▲ Ethereum (ETH) ©

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has recently shown signs of a rebound, but an expert has issued a chilling warning that this is merely a deception within a massive bear market, and a painful crash to $440 is approaching to confirm the true bottom.

According to crypto media outlet Bitcoinist on April 9 (local time), virtual asset market analyst Tony Severino stated via social media X that the long-term correction phase Ethereum is currently experiencing shows a completely different pattern from past typical market cycles. While most investors anticipate a bull market, this cycle could see a bear market rally with only temporary rebounds, failing to break previous all-time highs.

Severino explained this phenomenon using the concept of internal cycle harmonics within cycle theory. He analyzed that within a large overall market cycle, there are several smaller cycles with their own timelines, and if the volatility of these smaller cycles overwhelms the larger cycle, it should be interpreted as a strong warning sign that the market is dominated by a bear market rally.

Ultimately, the recent price increase shown by Ethereum is likely temporary or a deception to trap investors. Even if it appears to be on an upward trend on charts, from a macroeconomic market structure perspective, it is merely a temporary phenomenon occurring within a prolonged bear market, thus premature expectations of breaking all-time highs should be avoided.

The most concerning aspect is that despite the current sluggish price movement, Ethereum has not yet even reached its true market bottom. Severino emphasized that while Ethereum is precariously holding above a major support level around $2,000, historically, whenever this defense line has broken, a brutal bottom-finding process has invariably followed.

If this key support level is breached, Ethereum is expected to face another sharp decline. Through chart analysis, Severino suggested $800 as the primary target for the upcoming downtrend wave, and in the worst-case scenario, he predicted that the prolonged bear cycle would finally conclude only after plummeting to around $440.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*