Ethereum’s Bullish Wave Count Signals End of Correction: Key Levels to Watch

Key Takeaways

• Ethereum (ETH) attempts to reclaim a long-term and short-term support level.
• The long-term Ethereum outlook is more bullish than the short-term one.
• Can ETH close the week positively and begin a bullish trend reversal?

The Ethereum price has struggled this year, falling 65% between January and April and breaking down from a long-term support level.

However, the Ethereum price flipped the script after April, completing a major bullish rally that regained over half of the previous losses.

Today, the ETH price attempts to close above a key support level and confirm the worst is over.

Ethereum’s Bullish Reclaim

The weekly time frame chart shows that Ethereum has reclaimed two key support levels.

Firstly, the ETH price deviated below a long-term ascending support trend line (black circle) before reclaiming it.

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Secondly, Ethereum reclaimed the $2,250 horizontal support area and attempted to create a bullish engulfing candlestick (green icon).

It will confirm the candlestick with a close above $2,520. If successful, it will go a long way in signaling an upward movement toward new highs.

However, while the ETH price analysis is promising, technical indicators are not. The Relative Strength Index (RSI) is 50, while the Moving Average Convergence/Divergence (MACD) is below 0.

So, the weekly time frame alone cannot give a decisive Ethereum price prediction.

Can Ethereum Break Out?

The daily time frame analysis shows that Ethereum attempts to reclaim the horizontal resistance of $2,450.

This critical resistance was supported since May 11, before the price broke down last week.

If the Ethereum price successfully reclaims it today, it will mirror the long-term reclaim of the support trend line.

The wave count supports the reclaim, pointing to a completed five-wave increase (green) and a complex corrective structure (red).

However, Ethereum has to close above $2,450 to confirm the bullish rally.

Like the weekly time frame, technical indicators do not confirm the trend’s direction.

Finally, the only decisively bullish chart is the hourly one, which signals that the correction is over.

Since June 22, the ETH price has completed a five-wave upward movement (green) and an A-B-C correction (red).

Wave C fell below the wave A low and is 1.61 times its length. The movement is contained inside a parallel channel, as is common in flat corrections.

Furthermore, hidden bullish divergences (orange) in the RSI and MACD align with the bullish Ethereum prediction.

Therefore, if the short-term count plays out, the ETH price will close above $2,450 and increase toward its May high of $2,850.

Ethereum’s Time to Shine

Ethereum regained its footing after a sharp fall last week and is attempting to reclaim the $2,450 horizontal support area.

The short- and long-term wave counts are bullish, and the price is predicted to rally significantly next week.

A weekly close above $2,520 will also create a bullish long-term pattern, invalidating last week’s decline.