Ethereum Retraces to Key Levels, Next Breakout Could Define Bullish Leg

Ethereum’s price has entered a consolidation phase after falling to $3,100 on Dec. 20, likely marking the end of a corrective phase.

The formation of a symmetrical triangle suggests the next significant price movement is on the horizon.

A bullish breakout remains the dominant outlook, supported by technical patterns and momentum indicators.

ETH Price Analysis

This daily Ethereum chart shows a clear five-wave Elliott structure on a daily timeframe, followed by an ABC corrective wave.

The Fibonacci retracement levels suggest critical support near $3,209 (0.5). After the completion of wave C at $3,100 on Dec. 20, the price started forming a symmetrical triangle.

This suggests consolidation before the next five-wave Elliott structure, while the temporary support is found to be near $3,320.

The daily Relative strength index (RSI) indicates a downward trend with no overbought or oversold conditions, suggesting consolidation.

If support levels break, the current corrective wave may aim for deeper retracement levels, such as $3,004 or lower.

Key resistance lies at $3,666 (0.236 Fibonacci) and $4,075, the yearly high.

A breakout above these levels would confirm bullish continuation, while failure could lead to further downside.

ETH Price Prediction

The hourly Ethereum chart indicates the price is attempting to recover after a corrective ABC pattern.

Wave (i) and (ii) of a potential five-wave impulse are visible, with the current price being around $3,400, suggesting a bullish momentum.

Fibonacci extensions project key upside targets at $3,868 (1.272), while retracement levels highlight support zones to monitor.

The RSI shows mild bullish momentum as it rebounds from lower levels, aligning with the early stages of a potential upward wave (iii).

However, a failure to breach immediate resistance could invalidate the bullish outlook. If key levels are broken, the chart outlines a pathway for a larger five-wave advance.

Fibonacci levels suggest resistance at $3,526 (0.5), $3,579 (0.618), and $3,748 (1.0 extension).

For the upside, $4,085 and $4,191 are key targets—support levels to monitor include $3,305 and $3,409. A break below $3,409 may signal a deeper bearish continuation toward $3,004.

Key Levels to Watch:

• Immediate resistance: $3,526 (0.5 Fibonacci retracement).
• Critical resistance: $3,579 (0.618 Fibonacci retracement).
• Upside targets: $3,748 (1.0 Fibonacci extension), $4,085, and $4,191.
• Key support: $3,305 and $3,209.
• Deeper support: $3,004 (0.618 Fibonacci retracement).

About the Author

Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis.

Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information.

Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.

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