Ethereum (ETH) Moving Sideways Around $2,500 After Nearly Doubling

Key Takeaways

• ETH broke out from a long-term corrective wedge.
• Five-wave impulsive structure confirms trend reversal.
• Short-term bull flag breakout favors further upside.

Ethereum has recently broken out of a long-term descending corrective structure, showing strong bullish momentum after months of decline.

The current price action reflects a transition from corrective to impulsive movement, suggesting the potential start of a broader uptrend.

We analyze both higher and lower time frames to assess the macro structure and short-term scenarios.

ETH Price Analysis

ETH’s macro structure shows the completion of a WXYXZ complex correction, which lasted several months from the $4,100 peak.

Between December and April, the price action moved in a defined descending channel, with clear subdivisions marked as waves a, b, c, d, and e to a low of $1,436.

This extended correction often occurs before a significant bullish reversal, especially when accompanied by a falling wedge pattern.

The breakout above the channel resistance occurred in late April with a sharp rally, indicating a strong change in market sentiment.

This impulsive breakout also coincided with increasing volume and a break above several key horizontal resistance levels, suggesting institutional interest or large capital inflow.

Following the breakout, ETH quickly reclaimed the 0.5 Fibonacci retracement level at $2,503, measured from the all-time high of $4,106 to the local low near $1,586.

This is a critical threshold: the 0.5 level is often a battleground between bulls and bears in recovery phases.

Currently, ETH is trading around $2,580, forming a consolidation range slightly above this midpoint.

Moreover, the Relative Strength Index (RSI) on the 4H chart shows a clear bullish shift, moving away from oversold territory and establishing higher lows in line with price.

This divergence from the previous bearish trend further confirms a likely trend reversal.

The next Fibonacci resistance at 0.382 lies at $2,881, which also marks the top of wave (v) in the lower time frame.

A sustained push through this zone would validate the bullish continuation and open the way toward $3,078 – a horizontal resistance level that aligns with historical supply zones.

Should ETH face rejection from these levels, a retest of $2,503 as support would be healthy and expected before further upward continuation.

However, a breakdown below $2,500 would undermine the bullish case in the short to medium term.

ETH Price Prediction

On the lower time frame, ETH has completed a clean five-wave impulsive move labeled (i) to (v), with wave (v) peaking near $2,738.

This impulsive advance, breaking the corrective market structure, is a classic bullish pattern suggesting that a new uptrend is in progress.

Each wave shows appropriate proportions and corrective interludes, particularly wave (iv) which retraced into previous support before wave (v) launched upward.

After completing the fifth wave, ETH entered a descending consolidation structure, likely a bullish flag, which is typical following strong impulsive moves.

The structure has now broken to the upside, signaling that ETH may have finished its minor correction and is preparing for a new leg upward.

The RSI on the 1-hour chart confirms this breakout, having reset to neutral levels during the consolidation and now ticking back upward, a positive momentum signal.

If buyers step in with strength, ETH could retest the $2,880 resistance, and a breakout from that level may send it into the $3,000–$3,080 zone.

However, if ETH fails to break out convincingly and loses $2,580, the price could retrace deeper to the 0.5 Fib level at $2,503, or even as low as the 0.618 Fib at $2,125 in the case of a sharper correction.

This would still be consistent with a larger wave 2 retracement before entering wave 3 of a broader impulse.

The overall structure remains bullish as long as price action stays above $2,125. A break below that would suggest a deeper corrective structure, possibly invalidating the immediate bullish wave count.

Key Levels To Watch

Resistance: $2,881 (0.382 Fib), $3,078 (horizontal + Fib confluence), $3,349 (0.236 Fib)

Support: $2,503 (0.5 Fib), $2,125 (0.618 Fib), $1,586 (0.786 Fib)