Ethereum (ETH) Elliott Wave Analysis: Descending Triangle Breakouts Expected

Ethereum (ETH) is currently at crucial technical levels, with the price consolidating within corrective patterns that could soon lead to breakouts. ETH is forming a descending wedge, hinting at a potential bullish reversal, while TRX remains in a corrective phase after a strong rally. This analysis examines key price levels, technical indicators, and potential scenarios for both cryptocurrencies.

Ethereum (ETH) Price Analysis

Ethereum’s 4-hour chart highlights a descending wedge formation, suggesting that a potential breakout could be imminent. The asset has been consolidating within this structure after completing Wave (iii) of a five-wave impulse, followed by an ABCDE corrective pattern.

Provided ETH can sustain momentum above key resistance levels, a bullish reversal is highly likely. However, the price remains stuck between the 0.5 and 0.382 Fibonacci retracement levels, indicating a critical decision point for its next direction.

The Relative Strength Index (RSI) on the 4-hour timeframe shows a slight bullish divergence at recent lows, hinting at strengthening buying pressure. However, ETH has not established a convincing breakout above the $3,420 resistance level (0.382 Fib). 

Until this happens, sellers could maintain control, forcing a deeper retracement toward lower Fibonacci support zones. A close above $3,673 would confirm renewed bullish momentum, potentially pushing ETH back toward its previous high near $4,081.

On the downside, if ETH fails to break out, support remains at $3,216, aligning with the 0.5 Fibonacci retracement. A more significant breakdown could expose Ethereum to further downside risk, with the next major support levels at $3,012 and $2,721. These levels represent the 0.618 and 0.786 Fibonacci retracement areas, respectively, and could serve as potential reversal zones in case of a correction.

Overall, Ethereum remains at a crossroads, with a breakout above resistance signaling a bullish reversal, while failure to maintain support could lead to extended consolidation. Traders should watch for volume confirmation alongside price action to validate the next trend direction.

Ethereum (ETH) Price Prediction

Ethereum is attempting to break out of a descending wedge structure, and confirming the bullish reversal. The chart presents a detailed Elliott Wave count, indicating the completion of wave (4) and the beginning of a five-wave impulse to the upside. The price currently hovers near $3,234, a key pivot area.

The Relative Strength Index (RSI) previously showed bullish divergence near oversold levels (circled on the chart), confirming a potential bottom formation. This momentum shift aligns with the breakout from the wedge, validating an upward trajectory. The Fibonacci retracement levels suggest immediate resistance at $3,420, while strong support lies near $3,012 (0.618 Fibonacci retracement).

Wave (i) has likely initiated, and a corrective wave (ii) pullback may occur before wave (iii) drives ETH toward its next key resistance zones. If bullish momentum continues, Fibonacci extensions project a price target above $4,000, with wave (v) potentially pushing beyond $4,600.

Key Levels to Watch

• Immediate Resistance: $3,420 (0.382 Fibonacci level)
• Key Support: $3,216 (0.5 Fibonacci retracement)
• Critical Support: $3,012 (0.618 Fibonacci retracement)
• Short-Term Target for Wave (iii): $3,899 (1.272 Fibonacci extension)
• Wave (v) Projection: $4,612 (2.618 Fibonacci extension)
• Invalidation Zone: Below $2,821, signaling potential downside risk.

If ETH maintains its bullish momentum, a push toward $4,085 and beyond remains a viable scenario as the price should continue its higher degree uptrend for its wave 5 to a new all-time high.