Ethereum’s Impulse Wave Setup: Long $3,640 Dip or Short $4,300 Rejection?

  • ETH’s wave 1 impulse from $3,500 lows sets up $3,640 long entry for wave 3 target at $4,500, per Elliott analysis.
  • ETF inflows hit $2.1B weekly, boosting TVL to $120B amid Dencun’s fee cuts and restaking hype.
  • $4,300 resistance pivotal: Break for $5K moonshot, reject for $3,200 short cascade.

Ethereum (ETH) remains the DeFi darling, but its recent price action is scripting a classic Elliott Wave thriller. As Bitcoin consolidates above $68,000, an insightful update from chart maestro @ai_charts, dissects the ETH/USD daily chart: an initial impulse surge from October lows has primed the pump for a second leg up. The verdict? Go long around $3,640 to ride the impending wave, or pivot short if $4,300 range resistance holds firm and triggers rejection.

Zooming into the TradingView snapshot from mid-October to early November 2025, ETH’s candlesticks paint a bullish bias. We bottomed at $3,500 on October 18 amid ETF outflow jitters, then impulsed 12% to $3,950 by October 23—marking wave 1 in Elliott parlance. Now consolidating in a tight $3,600–$3,800 range, the chart flags $3,640 as the sweet-spot entry for wave 2’s retracement buy. Upside targets? A measured move pencils $4,500 (wave 3 extension) by mid-November, assuming 61.8% Fib confluence. Volume divergence on the pullback—rising buys versus fading sells—screams accumulation, with MACD histogram flipping positive for the first time since September.

This isn’t just technical sorcery; fundamentals are stacking the deck. Ethereum’s Dencun upgrade’s echoes linger, slashing layer-2 fees by 90% and igniting a 30% surge in TVL to $120B. Spot ETH ETFs, greenlit in July, clocked $2.1B inflows last week, per Bloomberg, outpacing Bitcoin’s. Whispers of a Vitalik Buterin-led scalability pitch at Devcon in November could catalyze restaking protocols, funneling more ETH into yields. On-chain, active addresses hit 1.2M daily—a 22% QoQ jump—signaling real utility beyond memes.

Caveats? Plenty. A Fed pivot delay or Solana’s meme-fueled siphon could cap ETH at $4,000. If $3,600 support cracks, $3,200 beckons. But with RSI at 55 (neutral yet coiling) and BTC dominance dipping below 55%, alt momentum favors the long. $4,300 looms as the make-or-break: breach it, and $5,000 enters chat; reject, and shorts feast to $3,200. In Ethereum’s maturation arc, this impulse duo could etch Q4 gains. Traders, position accordingly—the wave’s cresting.

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.

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