Ethereum Price Update: A Liquidity Sweep at $4,100 and What's Next?
The Ethereum market has recently demonstrated a significant reaction to a crucial Fibonacci support level situated around the $4,100 mark. As anticipated, ETH successfully tapped into this cluster and has subsequently exhibited a bounce. However, the question remains: is this the commencement of a more substantial rally, or merely a temporary movement within a corrective wave?
Key Support Levels Currently in Play
Several key support levels are currently influencing the Ethereum market:
- $4,100: A major liquidity cluster that is now functioning as immediate support
- $3,665: The next Fibonacci support level that could potentially come into play
- $3,374: A critical level that must be maintained to preserve the bullish structure
Short-Term Price Action Analysis
On the lower timeframes, Ethereum's price action can be characterized as follows:
- Liquidity Sweep: ETH swept liquidity at the $4,100 level
- Bounce: The price bounced back toward the 23.6% Fibonacci retracement level
- Correlation with Bitcoin: Ethereum has remained closely correlated with Bitcoin, which also touched its 23.6% Fibonacci level
Despite the bounce, Ethereum is still printing lower lows and lower highs, indicating that the short-term structure remains bearish. Nevertheless, it's possible that we are forming the early stages of a B-wave bounce in Elliott Wave terms.
Elliott Wave Perspective
From an Elliott Wave perspective, the move down to $4,100 could be labeled as an A-wave, potentially forming a leading diagonal or WXY structure. Ethereum may now be in a B-wave bounce, which could overshoot resistance levels before a C-wave pullback. A strong overshooting B-wave would increase the probability that ETH won't break below $4,100 in the larger corrective wave.
Resistance Levels to Watch
If Ethereum continues its upward trajectory, the next resistance zones to watch are:
- $4,331: A potential resistance level that could slow down the price movement
- $4,416: Another resistance level that could pose a challenge to the price
- $4,500: A breakout above this level could invalidate the corrective structure and open the door for another cycle high.
