Key Takeaways
Ethereum (ETH) is currently in a corrective phase within a descending triangle, facing uncertain momentum while at a critical juncture.
Today, the price bounced from the descending support but is still within the boundary of the bearish structure.
Will it manage to break it in this advancement?
The daily ETH chart highlights a corrective phase following a five-wave impulsive structure, with price action forming a descending triangle. The correction bottomed near $2,915, slightly below the 0.618 Fibonacci retracement, before bouncing.
The price remains under pressure, and the lower boundary of the triangle is tested while consolidating above key Fibonacci levels.
ETH’s daily Relative Strength Index (RSI) remains in neutral territory, showing neither extreme overbought nor oversold conditions.
This suggests that Ethereum is in an accumulation phase, awaiting a catalyst for its next major move.
If the price can reclaim the 0.5 Fibonacci retracement level at $3,216, it could confirm the beginning of a new impulsive wave.
The current consolidation inside the wedge could indicate a potential bullish reversal.
However, failure to hold support at $3,012 may expose ETH to further downside toward $2,821. On the other hand, breaking above the $3,420 level would be an early signal of renewed bullish momentum, with the 0.236 Fibonacci level at $3,673 acting as the next major resistance.
The 1-hour chart provides a detailed Elliott Wave projection, indicating that Ethereum may initiate a new five-wave impulse to the upside.
The breakout from the descending triangle could lead to a short-term rally, suggesting Wave (i) targets the $3,552 level. A corrective Wave (ii) pullback could test the $3,225 level before the next impulsive leg higher.
If Ethereum sustains momentum, Wave (iii) is expected to target the $3,900 to $4,082 range, aligning with Fibonacci extension levels of 1.272 and 1.618.
A healthy retracement within Wave (iv) could provide a buying opportunity near $3,755, followed by a final push in Wave (v) toward the $4,285 to $4,429 range, representing the 2.0 and 2.272 extensions.
A key invalidation level for this bullish scenario is a breakdown below $3,012, suggesting that the corrective phase is incomplete.
Conversely, a strong move above $3,678 would reinforce the bullish thesis, signaling continued upside potential.