Ethereum (ETH) Stays Above Key Fib Level, Strengthening Reversal Hopes

Key Takeaways

• Price recovering from correction
• Key Fibonacci levels at $2,503 and $2,881
• Potential five-wave bullish structure forming

Ethereum (ETH) recently completed a WXY corrective phase and appears to form a new impulsive structure.

The higher time frame chart shows a bounce to $2,160 from the corrective Wave Y low, suggesting the potential for a major reversal after a deep correction.

ETH Price Analysis 

Ethereum has undergone a prolonged correction following a completed WXY corrective structure. The price found support near $2,500, aligning with the 0.5 Fibonacci retracement level from the previous bullish wave. 

It spiked to $2,160 on Feb. 3 but quickly snapped above the 0.5 Fib, leaving a large 17% wick on the 4-hour chart.

This suggests that the market is at a critical juncture, potentially transitioning from a correction phase to the early stages of a new impulse.

The chart also highlights a breakdown from a descending triangle formation from the $4,100 high, which had contained the correction for several months.

This structure typically signals exhaustion in selling pressure, often preceding a trend reversal. The recent sharp bounce from the lows suggests that buyers are stepping in at key support levels.

Despite this, ETH still faces resistance around the 0.382 Fibonacci level at $2,881. A confirmed breakout above this region could signal the start of a stronger upward trend.

The RSI remains neutral, indicating that Ethereum is neither overbought nor oversold, leaving room for further upside if momentum picks up.

If Ethereum establishes a higher low, it could confirm the beginning of a new bullish five-wave Elliott Wave sequence.

However, failure to hold above the $2,500 support region could expose ETH to deeper retracements, possibly toward the 0.618 Fibonacci level at $2,125.

ETH Price Prediction 

On the 1-hour chart, Ethereum appears to be forming a new impulsive wave structure. The current price action suggests that wave (ii) has been completed at a higher low of $2,530, and wave (iii) may be in progress.

A breakout from a descending resistance trendline further supports the bullish case, with the next key resistance near $2,881.

If the impulsive structure holds, wave (iii) could extend toward $3,349, coinciding with the 0.236 Fibonacci retracement level from the broader corrective decline. Wave (iv) would likely see a pullback toward $3,000 before a final wave (v) push higher.

However, if ETH fails to hold above the recent breakout zone, it risks invalidating this wave count.

The critical invalidation level sits near $2,500. Below this, ETH could revisit deeper support zones, including the $2,125 level.

The RSI shows mild bullish divergence, which could support further upward movement. If buying volume increases, the next bullish targets are set around $3,349 and potentially higher toward $3,600 in an extended scenario.

Key Levels to Watch

• Immediate Resistance: $2,881 (0.382 Fibonacci level).
• Key Support: $2,503 (0.5 Fibonacci retracement).
• Critical Support: $2,125 (0.618 Fibonacci retracement).
• Short-Term Target for Wave (v): Above $3,349 if momentum sustains.
• Invalidation Zone: Below $2,500.