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

Ethereum has been in a prolonged corrective phase following an extended bullish run. The broader crypto market remains uncertain, with Bitcoin consolidating near key levels and altcoins attempting to stabilize. 

ETH recently rebounded from crucial support near $2,500, coinciding with the 0.5 Fibonacci retracement, suggesting a potential shift in trend. However, resistance near $2,881 remains a key barrier to overcome before a sustained uptrend can be confirmed.

ETH Price Analysis

Ethereum has undergone an extended correction, completing a WXY corrective structure before rebounding from $2,500—aligning with the 0.5 Fibonacci retracement from the prior bullish wave. On February 3, ETH briefly dipped to $2,160 before surging back above $2,500, leaving a sharp 17% wick on the 4-hour chart, signaling a possible reversal.

The broader market structure also highlights a breakdown from a descending triangle that formed from the $4,100 high. This pattern, often a sign of declining selling pressure, suggests a potential shift toward accumulation. The recent bounce indicates that buyers are defending key levels, yet ETH must overcome the 0.382 Fibonacci resistance at $2,881 to confirm a breakout.

Further, the 4-hour RSI remains neutral, showing that Ethereum is neither overbought nor oversold, allowing room for additional gains. If ETH can consolidate above $2,500, a bullish breakout scenario becomes increasingly likely. However, failure to hold support could see a retest of lower levels, with the 0.618 Fibonacci retracement at $2,125 acting as a crucial zone. Volume trends will be key in determining whether the recent rebound has enough strength to push through resistance or if selling pressure will continue to cap gains.

ETH Price Prediction

On the 1-hour chart, Ethereum appears to be forming a new impulsive wave structure. Recent price action suggests that wave (ii) has likely completed at $2,530, and wave (iii) may now be in progress. A breakout above the descending resistance trendline further strengthens this bullish outlook, with the next resistance near $2,881.

If this structure holds, wave (iii) could extend toward $3,349, aligning with the 0.236 Fibonacci retracement of the broader decline. A potential wave (iv) pullback might bring ETH back to $3,000 before a final wave (v) push toward higher levels, targeting the $3,600 range if bullish momentum continues.

The RSI is displaying mild bullish divergence, suggesting that buyers are beginning to regain control. However, failure to sustain support above $2,500 could invalidate the bullish scenario, potentially driving ETH back to $2,125 or lower. A confirmed break above $2,881 would provide a stronger bullish confirmation, paving the way for continued gains toward the mid-$3,000 range.

If volume surges and ETH can sustain momentum above $3,000, the likelihood of wave (v) extending beyond $3,349 increases. However, if selling pressure intensifies, traders should watch for a deeper retracement, possibly toward the $2,500-$2,125 support zone. Market conditions remain uncertain, making short-term price action critical in confirming Ethereum’s next trend direction.

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 Target for Wave (v): Above $3,349 if momentum sustains
• Invalidation Zone: Below $2,500

Ethereum’s price is at a critical juncture, with a decisive move above $2,881 likely confirming a trend reversal. However, failure to hold support could extend the corrective phase further.