This high corresponds with its last year’s in March when ETH first came to the $4,080 area. It was followed by a correction that led to a low of $2,130 in August. The price consolidated forming a symmetrical triangle around $2,500 before it finally made a breakout in November.
Its latest peak retested was last year’s high and found resistance again, making a sharp downturn and proceeding to form a descending triangle The triangle’s base aligns with the 0.618 Fibonacci retracement level at $3,012, providing a pivotal support zone. Despite recent bearish attempts, the Relative Strength Index (RSI) remains neutral, reflecting market indecision. This consolidation suggests that ETH is at a crossroads, awaiting a decisive breakout.
The descending triangle follows a sharp impulsive rally, emphasizing the importance of this consolidation phase. A break above the upper boundary near $3,420 (0.382 Fibonacci) would confirm a bullish continuation toward $4,081, aligning with prior highs. Conversely, a breakdown below $3,012 (0.618 Fibonacci retracement) may trigger a bearish trend targeting the 0.786 level at $2,721 The RSI’s current levels imply limited momentum, demanding confirmation via volume or price action.
The larger Elliott Wave structure suggests that the ongoing triangle corresponds to a corrective Wave (4), typically preceding a final impulsive wave (5). If bullish momentum prevails, ETH could resume its upward trajectory, targeting the completion of Wave (v).
ETH Price Prediction
The 1-hour chart shows that the Elliott Wave count within the descending triangle could be a completed ABCDE correction. The recent decline appears to form a final corrective Wave (e) near the triangle’s lower boundary around $3,070.
The hourly chart RSI is sitting at the oversold region suggesting that a reversal from this area looks more likely. This sets the stage for a potential bounce and a breakout transitioning into Wave (i) of the next impulsive phase.
