Ethereum (ETH) Elliott Wave Analysis: Price Got Oversold Ready For A Larger Recovery

Ethereum (ETH) has recently exhibited notable price fluctuations, reflecting both bullish and bearish sentiments. Utilizing Elliott Wave Theory, Fibonacci retracement levels, and RSI momentum, this analysis aims to dissect ETH’s current price structure and project potential future movements across higher and lower timeframes.

ETH Price Analysis

On the daily timeframe, Ethereum demonstrates a complex corrective structure following its impulsive rally that retested its last year’s high of around $4,100. The price has formed a clear W-X-Y correction since last year’s high, concluding near the 0.618 Fibonacci retracement level of around $2,125.

This level has acted as a critical support zone, absorbing selling pressure after ETH’s sharp decline from its $4,106 high. The Relative Streng Index (RSI) hovers above the oversold zone, reflecting that the price might be ready for a reversal. 

Since Friday when it was retesting its recent descending triangle around $3,350, we saw a decline of 35% to a low of $2,163. Despite the sharp decline, the price made a strong recovery today, leaving a wick on the daily chart.

It is currently being traded above $2,600 but the day still has to show how will this candle close and provide further insight into the current market context.

ETH’s breakout below the descending triangle hints at a bearish continuation. However, if the price keeps trading above the 0.5 Fibonacci level of $2,503, that will suggest a potential bottoming process. The current consolidation phase aligns with the Elliott Wave corrective structure, indicating that ETH may be preparing for the next impulsive move.

Additionally, price action shows that ETH is struggling to reclaim the descending resistance line, which could act as a barrier unless broken decisively. A break above $2,882 (0.382 Fibonacci retracement) would confirm bullish strength, potentially targeting $3,349 (0.236 Fibonacci retracement). Conversely, a failure to sustain above $2,503 could trigger further downside, with the RSI providing crucial momentum signals to watch for trend confirmation.

ETH Price Prediction

On the 15-minute chart, ETH appears to be in the early stages of a new five-wave impulsive structure. that may lead to a larger recovery. Wave (i) seems to have topped around $2,690, followed by a corrective Wave (ii) that may find support near the 0.5 Fibonacci retracement at $2,656. A successful hold above this level could propel ETH into Wave (iii), targeting the 1.618 Fibonacci extension at $2,987, with further potential toward $3,180 (2.272 extension).

Wave (iii) is anticipated to be the strongest leg, driven by increased bullish momentum, with a key resistance at $2,804 (1.0 Fibonacci extension). Should ETH surpass this, the price could extend gains toward $3,180, aligning with historical resistance zones. Wave (iv) is expected to retrace moderately, finding support near $2,884 (1.272 extension), providing a potential entry point before ETH advances into Wave (v), aiming for targets around $3,180 to $3,283.

RSI momentum on the lower timeframe shows mild bullish divergence, supporting the potential for upward continuation. However, a breakdown below $2,503 would invalidate this bullish scenario, signaling potential for deeper corrections, possibly targeting the $2,400 region. Monitoring volume alongside RSI will be key to validating the strength of any breakout or breakdown.

Key Levels to Watch

• Immediate Resistance: $2,882 (0.382 Fibonacci retracement)
• Key Resistance: $3,180 (2.272 Fibonacci extension)
• Critical Resistance: $3,349 (0.236 Fibonacci retracement)
• Immediate Support: $2,656 (0.5 Fibonacci retracement)
• Key Support: $2,503 (0.5 Fibonacci retracement, critical support zone)
• Invalidation Zone: Below $2,503