Elliott Wave bearish cycle for ETHUSD is almost complete

The period from May 12 to May 23 is a period that ETHUSD bulls would like to forget. The second largest cryptocurrency fell fromall-time high of $ 4380 before 1730dollars. While some may regard cryptocurrency as Gold 2.0, glitches like this show that this space is still wildly volatile. What's even more interesting to us is the Elliott Wave structure of this 60 percent drop. A three-wave move would indicate that the larger uptrend is still ongoing. A five-wave impulse would mean we should expect further weakness. Let's take a look.

Unfortunately for the bulls, drop to $ 1,730looks more like an impulse pattern rather than a correction. It is designated as 1-2-3-4-5, where wave 2 is an expanding flat and wave 4 is a zigzag. After that, the recovery from the bottom of wave 5 should be another zigzag retracement A-B-C. If this count is correct, ETHUSD is on the verge of completing a 5-3 bearish wave cycle. According to the theory, once wave C is over, we can expect the trend to resume in the direction of the impulse sequence. The odds are greater against the bulls than in their favor. Initial targets below the lower boundary of wave 5 make sense when the bears return. Compared to the current price of ~ $ 2,780, this means another drop of at least 35%. Most likely more.