Ethereum (ETH) has arrived at a critical decision zone that could determine whether we see a major breakout to the upside or a short-term pullback before continuation. Letโs break down the two possible scenarios based on Elliott Wave analysis.
๐ต The Blue (Bullish) Scenario
In the blue count, we are tracking a bullish structure:
Wave 4 likely completed around August 19th.
The next move up was a Wave 1, followed by a correction into Wave 2.
Currently, ETH is in a B-wave retracement inside an ABC correction.
๐ For this count to remain valid, Ethereum should hold above the 78.6% retracement level. A decisive break below would put this scenario at risk.
โช The White (Short-Term Bearish) Scenario
While still long-term bullish, the white count allows for another leg down before continuation.
After a completed W-wave and X-wave bounce, the Y-wave is unfolding.
Inside the Y-wave, weโre tracking an ABC move:
A-wave down โ
B-wave up โ
Now unfolding into the C-wave (five-wave sequence).
This would take ETH lower into the same blue support area.