- Ethereum is currently navigating a complex A-B-C corrective pattern, with the $1,820 level representing the 78.6% Fibonacci retracement—a common termination point for Wave C.
- As of February 6, 2026, ETH has plunged 12% to trade at $1,894, liquidating hundreds of millions in leveraged positions as it nears the crucial support zone.
- Successfully holding the $1,820 floor could ignite a new supercycle toward $5,000, whereas a breakdown risks a deeper “capitulation” toward the $1,260 multi-year trendline.
The volatile world of cryptocurrency, Ethereum (ETH) continues to captivate traders and investors with its price movements. Recent analysis from prominent crypto analyst More Crypto Online highlights a potential test of the $1820 Fibonacci support level, as ETH navigates what appears to be a complex Elliott Wave correction.
The chart, spanning from mid-2025 to projected 2027, depicts a grand supercycle wave structure. Ethereum seemingly completed a major impulse wave (V) topping out near $12,000 in late 2026, followed by a sharp decline. This drop is labeled as wave (A), bottoming around $1,950, with subsequent waves (B) and (C) unfolding in an A-B-C corrective pattern. Subwaves within this correction show intricate zigzags, with Fibonacci retracement levels prominently marked on the right side of the chart.
Flash Crash Dynamics: Why ETH Plunged 12% in a Single Session
Key Fibonacci extensions include 88.7% at $4,461, 78.6% at $4,056, down to 78.6% at $1,818 – the latter aligning closely with the analyst’s targeted support. The chart also features resistance zones in maroon and support in brown, indicating potential reversal points. ETH trades at approximately $1,894, down over 12% in the last 24 hours, inching perilously close to this crucial threshold.
More Crypto Online’s update reiterates no change in the bearish plan, emphasizing the likelihood of testing $1820 before any meaningful rebound. This level represents a 78.6% retracement of the prior advance, a common target in Elliott Wave theory for wave C terminations. If held, it could signal the end of the correction and the start of a new bullish cycle, potentially targeting higher Fibonacci extensions in the $4,000-$5,000 range initially.
Market Headwinds: Regulatory Pressure and the Layer-2 Narrative Shift
However, a break below $1820 might expose lower supports around $1,500 or even $1,260, as indicated by the chart’s lower trendlines. Market sentiment remains cautious amid broader economic uncertainties, including regulatory pressures on DeFi and layer-2 solutions, which Ethereum heavily relies on.
Traders should monitor volume and RSI indicators for divergence signs, which could precede a reversal. Institutional interest, such as ETF inflows, might provide upside catalysts if support holds. Conversely, persistent selling pressure from whales could accelerate the decline.
Ethereum’s current trajectory underscores the importance of technical levels in crypto trading. While short-term pain may persist, the long-term outlook for ETH remains optimistic, driven by its ecosystem’s growth in NFTs, staking, and Web3 applications. Investors are advised to exercise risk management, perhaps scaling in at confirmed supports.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
