Ethereum (ETH) Price Puts Pressure on Descending Triangle Resistance

ETH Price Analysis

Ethereum’s daily chart reflects a pivotal structure, with price action completing a corrective Wave (iv) and possibly transitioning into an impulsive Wave (v). Wave (iv) found robust support at $2,900, a key level reinforced by the 0.618 Fibonacci retracement of Wave (iii). This bounce also coincided with RSI recovery from oversold conditions, reinforcing the significance of this zone.

The upward breakout from the descending wedge will further signal a bullish reversal, with the price now trading near the $3,414 level, which aligns with the 0.382 Fibonacci retracement of the preceding corrective structure. Sustained consolidation above this level would increase the likelihood of further upside.

Elliott Wave analysis projects Wave (v) extending towards key Fibonacci extensions. The $3,745 and the $4,081 levels act as immediate resistance, which if surpassed will bring ETH to potentially overshoot $4,419 if momentum builds.

However, the bullish outlook remains contingent on holding support levels at $3,216 (0.5 Fib) and $2,821 (Wave (iv) low). A failure to maintain these zones could invalidate the current wave structure and lead to deeper retracements.

With RSI momentum recovering but not overbought, Ethereum retains a favorable setup for further bullish advancement, though confirmation through volume and sustained levels is needed.

ETH Price Prediction

On the 1-hour chart, Ethereum is attempting to break out from a descending triangle, potentially completing Wave (iv) and entering the initial stages of Wave (v). This breakout can occur immediately as the price is now interacting with the triangle’s resistance, but more likely a minor pullback will come first.

Wave (i) of this impulsive structure has already established a higher high, and the subsequent retracement for Wave (ii) could test the 0.5 Fib support at $3,216. This healthy pullback would be indicative of a strong underlying trend.

After this pullback Wave (iii) should be underway, targeting the 1.618 Fibonacci extension at $4,080. Further extensions, such as the 2.0 at $4,275 and 2.272 at $4,419, serve as key levels for upward momentum as the potential ending point of this five-wave impulse.. RSI on the 1-hour chart supports this bullish scenario, showing rising momentum without being overbought.

Nevertheless, traders should watch for potential pullbacks. A correction for Wave (iv) may revisit support levels at $3,540 (0.5 Fib) or $3,340 (0.236 Fib). A confirmed breakout above $3,745 will likely catalyze Wave (v) toward $4,275 and beyond.

Critical invalidation occurs if the price falls below $3,216, signaling bearish dominance and negating the impulsive wave count. In that case, we could be looking at a bearish scenario in which the correction inside the descending triangle still hasn’t ended.

Instead of the now-counted ABC correction, we could view the rise since Jan. 13 as wave D leading to another lower low of its wave E, amounting to a five-wave ABCDE correction. ETH could fall to $2,800-2,700 before it starts a new bull phase.

Key Levels to Watch

• Immediate Resistance: $3,678 (0.236 Fib).
• Major Resistance: $4,085 (Wave (iii) target).
• Immediate Support: $3,340 (0.236 Fib retracement).
• Key Support: $3,216 (0.5 Fib retracement).
• Critical Support: $2,821 (Wave (iv) low).
• Wave (v) Target: $4,419 (2.272 Fib extension).
• Invalidation Zone: Below $2,821.