Ethereum Price Movement Hinges on Critical Level

A cryptocurrency analyst has identified a critical level that could impact Ethereum's price movement. The level, known as Wave X, is set at $1,382 and serves as an invalidation point for the current wave count.

According to the analyst, who goes by the pseudonym The Penguin, the current price action is part of a broader Elliott Wave structure. This structure has been developing since 2016 and is characterized by a completed Cycle Wave 1 and an extended Wave 2 correction.

The Ethereum price has largely moved sideways and downward since its 2021 peak, with multiple rallies failing to break through the $4,500-$4,900 resistance zone. However, if the price falls below $1,382, the entire wave count would be invalidated, potentially leading to a significant decline in value.

The analyst's projection points to a downside break below $900, with Fibonacci extensions on the chart indicating potential lows between $800 and $500. This scenario is not unprecedented, given the 29% decline in Q1 2026 and the February 6 low at $1,743.