Recent analysis shows Ethereum (ETH) is on the verge of breaking its extended downtrend, yet price movements remain unpredictable as key support levels are currently under scrutiny. Utilizing Elliott Wave analysis along with Fibonacci projections can provide insights into Ethereum’s potential trajectory.
What Does the Technical Outlook Indicate for ETH?
The daily chart indicates that Ethereum entered a correction phase after peaking at $4,100 on March 11. Following a drop to $2,150 on February 3, Elliott Wave counting suggests that the price is now in recovery mode.
Fibonacci analysis reveals that ETH approached the critical 0.382 retracement level at $2,881 on February 4, which is now acting as a resistance point. Current market structure indicates efforts to stabilize between the $2,700 and $2,800 range.
What Scenarios Are Emerging for Ethereum’s Price?
After breaking free from a descending channel on January 31, Ethereum initially surged to $3,430 but then entered a deeper correction phase. The hourly chart points to the possibility that Ethereum is in the early stages of a five-wave Elliott pattern, with the first wave having completed at $2,881 on February 3.
- ETH is recovering off the critical support level at $2,503, which aligns with the 0.5 Fibonacci retracement.
- A bullish scenario could see Ethereum targeting $3,495 if the third wave emerges, coinciding with the 1.618 Fibonacci extension.
- A potential rise to $3,730 could occur in the fifth wave if bullish momentum persists.
Despite possible upward trends, risks remain. A breach of the $2,768 support could trigger a decline towards $2,503, jeopardizing the bullish outlook. For a sustained positive sentiment, Ethereum’s price needs to stay above $2,881.
