Ethereum Wave Count Shows Truncated Fifth as ETH Trades at $1843

• ETH chart shows that wave five ended early which could suggest the market is losing strong upward power
• If ETH does not recover past $4000 soon it may confirm that a long term correction has already started
• Analysts now closely watch the $1843 level as it may signal if the trend will hold or break lower further

Ethereum (ETH) may have completed a rare truncated fifth wave, with the weekly chart indicating the final leg failed to reach new highs. Analyst Fillius Bonacci shared this observation on May 4, noting that the fifth wave did not extend past wave three’s peak, creating confusion among technical analysts. The current ETH price is around $1,843, well below the all-time high near $4,800.

The full five-wave Elliott structure, beginning in 2018, appeared typical until wave five showed a premature stop. This early finish to a wave, known as a truncation, signals weakening momentum near the top of a cycle. The pattern suggests Ethereum may now be entering a longer correction phase as upside pressure fades.

With the wave count now under review by market watchers, one question arises: does this confirm a macro top or just a pause before continuation?

Elliott Wave Analysis Shows Unusual Fifth Wave Structure

Ethereum’s weekly chart reflects a detailed Elliott Wave sequence beginning from a significant low in late 2018. The price moved through impulsive waves one to three, followed by an ABC correction in wave four through 2022. This setup led to wave five’s launch near the $1,000 mark, moving upward into early 2024.

However, wave five failed to break the previous high made during wave three, which had peaked above $4,000. This shortfall meets the technical definition of a truncated fifth wave — a rare occurrence signaling a shift in market dynamics. Truncated waves often happen when bullish strength fades faster than expected at a cycle’s end.

Bonacci pointed out that many analysts are divided because the structure closely resembles completed formations. Yet the lack of higher highs marks a critical deviation. This discrepancy leads to varied interpretations of the wave count across the analyst community.

Current Price Action Supports Truncation Viewpoint

As of now, Ethereum trades near $1,843, maintaining a downward trajectory from the high of wave five. If this pattern is accurate, then the broader market could see Ethereum undergo a more extended correction cycle. History shows that truncated waves often precede deeper downside moves as momentum exits the asset.

ETH’s weekly structure also reveals overlapping internal subwaves, with declining volume across recent highs. This technical weakness may support the case for trend exhaustion. Bonacci’s view suggests that market strength has failed to sustain, reinforcing the truncation argument.

The dotted red markers on the chart indicate failed attempts to establish bullish extension. This area near $3,600 to $4,000 is now seen as heavy resistance. If ETH cannot retake these levels, a shift in macro structure becomes more likely.

Analysts Weigh In as Long-Term Trend Faces Crossroads

Bonacci’s wave count is one among many, but its timing aligns with slowing growth across crypto majors. His analysis has gained traction among traders seeking clarity in the current volatile structure. The tweet has drawn over 12.6K views, indicating high interest in this wave theory interpretation.

Other analysts also note the possibility of miscounting, but agree that price failing to push higher on wave five weakens bullish continuation cases. If Ethereum’s price does not recover above prior peaks soon, long-term investors may reposition based on expected correction depth.

This brings up a key market concern: will Ethereum reclaim the structure’s upper range or confirm the start of a larger reversal phase?