Ethereum pretended to rebound, but is the real bottom hidden at $440?

▲ Ethereum (ETH) ©

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

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

Severino explained this phenomenon using the concept of "internal cycle harmonics" within cycle theory. He analyzed that within a massive 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 designed to trap investors. Although it may appear 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 are cautioned against.

The most concerning part is that despite the current sluggish price movement, Ethereum has not yet even reached its true market bottom. Severino emphasized that while Ethereum is currently barely holding above a major support level above the $2,000 mark, historically, a brutal bottom-finding process has consistently followed whenever this defense line was breached.

If this key support level is broken, Ethereum is expected to face another steep 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.*