Ethereum (ETH) Elliott Wave Analysis: Price Stable Above $2,500 With Bullsh Signs

Ethereum (ETH) Elliott Wave Analysis: Price Stable Above $2,500 With Bullsh Signs

Ethereum (ETH) Eyes Bullish Reversal Amid Key Resistance Battle

Ethereum (ETH) is at a critical turning point, attempting to transition from its recent correction into a new bullish impulse. The cryptocurrency recently rebounded from key support at $2,500, aligning with the 0.5 Fibonacci retracement level, signaling a potential trend shift. However, resistance at $2,881 remains a major hurdle that must be cleared to confirm a breakout.

ETH Market Overview

Ethereum has been consolidating after a prolonged corrective phase, mirroring broader crypto market uncertainty. The price briefly dipped to $2,160 on February 3 before rallying back above $2,500, leaving a sharp 17% wick on the 4-hour chart, indicating strong buyer interest at lower levels.

The market structure suggests that selling pressure is weakening, and accumulation may be underway. A descending triangle breakdown from the $4,100 high has also been observed, which often precedes a trend reversal. However, ETH must decisively break above $2,881 (0.382 Fibonacci resistance) to confirm a sustained uptrend.

ETH Price Prediction & Elliott Wave Outlook

Ethereum appears to be forming a new five-wave impulse structure, suggesting that wave (ii) may have completed at $2,530, with wave (iii) currently developing. A breakout above the descending resistance trendline further strengthens the bullish case.

If the current wave pattern holds, ETH could see the following price targets:

• Wave (iii) Target: $3,349 (0.236 Fibonacci level)
• Wave (iv) Pullback: Potential retracement toward $3,000
• Wave (v) Extension: If momentum sustains, ETH could reach $3,600+

The RSI is showing mild bullish divergence, suggesting that buyers are regaining control. However, failure to sustain momentum above $2,500 could invalidate the bullish outlook, with downside risk toward $2,125 (0.618 Fibonacci retracement).

Key Levels to Watch

• Immediate Resistance: $2,881 (0.382 Fibonacci level)
• Key Support: $2,503 (0.5 Fibonacci retracement)
• Critical Support: $2,125 (0.618 Fibonacci retracement)
• Short-Term Bullish Target: $3,349+ if momentum holds
• Bearish Invalidation Level: Below $2,500

Conclusion

Ethereum is at a pivotal moment, with $2,881 as the key resistance that must be broken to confirm a bullish trend reversal. A move above this level could trigger strong upside momentum toward the mid-$3,000 range. However, if ETH fails to hold support at $2,500, a deeper retracement remains possible. Short-term price action will be critical in determining Ethereum’s next major move.