Ethereum is showing signs of a short-term pullback, but the structure suggests that we could still be looking for higher prices in the near term. Let’s dive into the latest analysis and key levels to watch.
🔹 Five Waves Down: A Warning Sign?
Looking at the recent structure, Ethereum printed a five-wave move down. This can also be interpreted as a WXY corrective pattern, but either way, the takeaway is the same:
👉 The five-wave decline looks like an A-wave of a larger correction.
👉 The current bounce upward is unfolding in three waves, which supports the idea that this is corrective, not impulsive.
🔹 Key Support Held at $4,100
Ethereum recently bounced from strong support around $4,100, and so far the upside is playing out in three waves. This aligns with the thesis that the market is currently in a B-wave bounce rather than starting a brand-new uptrend.
If this is correct, we should eventually see an ABC structure unfold.
🔹 Resistance Cluster to Watch
The resistance zone remains between $4,331 and $4,474. Ethereum has already reacted to this level, leading to a pullback that looks overlapping and corrective.
That’s actually a positive sign—it suggests this is just a micro pullback inside the larger B-wave.