Ethereum’s recent recovery has brought some short-lived relief, but bigger challenges still lie ahead. After weeks of sideways movement, prices are about to stabilize, but the broader structure suggests this move remains corrective rather than decisive. Until ETH breaks the $3,550 barrier, this pullback looks more like a pause in consolidation than the start of a sustained rally. happen.
Sideways correction still dominates Ethereum’s structure
According to See More Crypto Online Ethereum continues to trade within a sideways correction structure that has been in place since November 21st. Price trends remain below the upper bound of this correction. tendency This indicates that the market has not yet shown a convincing transition to a broader bullish phase.
At this stage, a breakout of the correction channel is the bare minimum sign that upward momentum may be brewing. Even if Ethereum rises, you still need to be careful. The rise from current levels could simply unfold as a yellow B wave within a larger circular wave 5 or as an extended phase of circular wave 4. Both scenarios suggest that the upward movement may be corrective in nature rather than the beginning of a sustained wave. rally.
For the more bullish orange scenario to gain any real credibility, Ethereum must: To resolutely regain the $3,550 resistance level. A clean break and hold above this zone will help confirm a stronger breakout structure and reduce the risk that the move is just a temporary pullback.
Until such confirmation emerges, another downside test remains likely. Overall, the technical structure still favors a consolidation or further downside over an immediate bullish continuation, keeping the market in cautious mode.
ETH mirrors Bitcoin’s range behavior
more recently updateCrypto Candy noted that Ethereum continues to mirror Bitcoin price trends and remains locked in a well-defined range between $2,700 and $3,400. ETH price has been nearly stagnant for the past few sessions, showing indecision across the broader market. market Participants are waiting for clearer directional cues.
However, ETH recently found support in the $2,600-$2,700 demand zone, causing buyers to step in and cause a short-term pullback. This reaction has started to push prices back towards higher levels within the range, suggesting that downside pressure is easing for now. If momentum continues to build, a move toward the upper bound near $3,400 could come back into focus.
For the bullish bias to remain valid, the $2,600-$2,700 support area needs to continue to hold. A complete breakdown below that zone will weaken the current. recovery Attempts to reopen the door to deeper negative aspects.
Featured image from Getty Images, chart from Tradingview.com
