Ethereum (ETH) Price Action Signals a Key Moment as It Tests Major Support Level

Key Takeaways

• Potential end of WXY correction at 0.618 Fibonacci support
• RSI bullish divergence suggests a possible reversal
• Initial five-wave structure developing
• Interested in buying or selling ETHEREUM ETH coin? Read our review of the best exchanges to buy and sell ETHEREUM ETH.

Ethereum (ETH) has been in a prolonged corrective phase but may show early signs of reversal. The daily chart indicates the completion of a WXY corrective structure.

Meanwhile, the hourly chart suggests a potential five-wave impulsive recovery is forming. However, confirmation of a sustained bullish reversal remains crucial.

ETH Price Analysis 

Ethereum’s daily chart illustrates a multi-month corrective structure, culminating in a sharp sell-off that formed a descending channel structure.

The WXY correction appears to have concluded, with wave Y bottoming at key horizontal support at $2,125 (0.618 Fibonacci retracement level). 

This aligns with a significant daily Relative Strength Index (RSI) bullish divergence, indicating a potential shift in momentum.

Despite this support, Ethereum remains inside a descending channel, with price action yet to confirm a definitive breakout. The primary resistance is $2,503, aligning with the 0.5 Fibonacci retracement.

Want to add ETHEREUM ETH to your portfolio? Discover the leading platforms for buying and selling ETHEREUM ETH on our exchange review page. 

A break above this level would strengthen the bullish case, potentially targeting $2,881 (0.382 Fibonacci) and $3,078 (previous structural resistance).

The RSI on the daily chart remains oversold, supporting the possibility of a relief rally. However, failure to maintain above the $2,125 support could expose Ethereum to further downside risks, potentially testing the $1,586 level (0.786 Fibonacci retracement).

ETH Price Prediction

The hourly Ethereum chart indicates the formation of a potential five-wave impulsive recovery. After falling near $2,125, price action could begin forming a recovery wave (i), followed by a corrective wave (ii). 

Ethereum could extend higher in wave (iii) if this wave structure holds, with a key upside target of around $2,503.

The short-term resistance level aligns with the 0.5 Fibonacci retracement, making it a crucial test for bullish momentum.

If Ethereum successfully clears this level, the next targets will be $2,881 and $3,078, aligning with the descending channel resistance.

Conversely, if Ethereum fails to maintain its short-term structure, a retest of $2,125 before another attempt at recovery remains possible.

A breakdown below this level would invalidate the impulsive wave count and suggest a continuation of the broader corrective trend.

Key Levels to Watch

• Immediate Resistance: $2,503 (0.5 Fibonacci retracement).
• Key Support: $2,125 (0.618 Fibonacci retracement).
• Critical Support: $1,586 (0.786 Fibonacci retracement).
• Short-Term Target for Wave (iii): Above $2,503 if momentum sustains.
• Invalidation Zone: Below $2,125.