- ETH rebounds 17% from a strong support cluster at $2,626, forming a bullish short-term structure.
- Price now tests the channel midline, with upside targets at $3,170–$3,356 if breakout holds.
- Elliott Wave structure suggests continued upside before ETH completes its broader correction.
In the volatile world of cryptocurrencies, Ethereum ($ETH) continues to captivate traders with its intricate price patterns. As Bitcoin stabilizes post its recent highs, ETH has carved out a compelling narrative on the daily chart, bouncing sharply from multi-layered support and now eyeing a crucial resistance test. Drawing from advanced Elliott Wave analysis shared by market researcher More Crypto Online, the stage is set for a potential upside extension amid an ongoing correction that began in August.Ethereum’s journey since the summer peak has been one of measured decline, fitting neatly into an ABC corrective structure.
Daily Chart Shows ETH Testing Channel Midline Resistance Zone
The recent low on November at approximately $2,626 marked a textbook confluence: the 50% Fibonacci retracement of the prior rally, the 100% projection extension, and the lower boundary of a descending trend channel. This “support cluster” triggered a robust 17% rally, propelling ETH from those depths to current levels hovering around $3,013 as of Thursday’s close. The chart, annotated with precise wave labels and Fibonacci levels, paints a picture of resilience—candles consolidating near the channel’s midline, with volume subtly increasing on the upswing.At this juncture, ETH faces its first major hurdle: the center line of the trend channel, roughly between $3,000 and $3,100. A decisive break above could validate the bullish interpretation, opening the door to higher targets.
Elliott Wave Structure Points to Continued Upside Before Next Leg
Analysts favor a push toward the 61.8% retracement zone at $3,170, with extensions reaching up to $3,356 over the next week. This aligns with wave (B) completion, potentially setting up for a final corrective leg (C) before broader bullish resumption. Key microstructures on lower timeframes, such as 4-hour RSI divergences or volume spikes, will be pivotal for confirmation.Broader context adds fuel to the optimism. With Ethereum’s ecosystem thriving—spot ETF inflows surpassing $2 billion YTD and layer-2 scaling solutions like Optimism and Arbitrum driving transaction efficiency—fundamentals underscore the technical setup. However, risks loom: a rejection at the midline could cascade toward deeper supports at $2,437 (123.6% extension), especially if macroeconomic headwinds like Fed rate signals intensify.
Fib Levels Reveal High-Probability Targets at $3,170–$3,356
Correlation with Bitcoin remains tight at 0.92, so BTC’s trajectory will heavily influence ETH’s path.For traders, this is a high-conviction setup. Long positions above $3,000 with stops below $2,900 offer asymmetric reward potential, while shorts await clear breakdown cues. As ETH tests these levels, the crypto market watches closely—will it reclaim lost ground, or deepen the correction? The waves suggest the former, but only price action will tell.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
