Ethereum is showing signs of being a big one outbreak after reversing a corrective price channel. This shift signals the beginning of an impulsive wave, indicating potentially strong upward momentum. Traders should look for confirmation above key levels as the path for the next rise begins to take shape.
Wave 3 in motion: preparation for a strong upward movement
Elliott Waves Academy has mapped out a projected path for Ethereum within a four-hour window revealed a major opportunity to ride a new bullish wave. The price seems to be preparing for a strong upward move after a successful breakout of the corrective price channel.
The technical structure indicates that Ethereum is likely to form Wave 3 of (3), with current projections showing the asset reaching an expansion of at least 161.8%. However, the internal momentum suggests that the movement may extend further, indicating that a major impulsive rally is now officially underway.
From a strategic point of view, any temporary bearish corrections would be seen as high probability opportunities for a long return. This small pullback causes local indicators to reset while the primary trend remains solidly higher. Traders are currently looking at the $2,624.14 level as a primary target, with the possibility of a move towards the 261.8% extension if the positive momentum continues.
To validate and maintain this bullish scenario, it is critical to see a confirmed breakout and sustained trading above the previous price channel. Staying above this structural line will strengthen the upside outlook and provide the necessary support for the next leg of the rally.
Ethereum Reaches Range High: Buyers Get In
According to Lennaert Snyder Ethereum recently hit its all-time high and liquidity, paving the way for a remarkable rebound after testing the extremes of its current range. This move reflects a strong recovery after aggressive price action and shows buyers are actively defending key levels.
For traders looking at local setups, caution is advised. Given the recent massive moves, it is best to wait for clearer directional signals before entering positions so that trades align with confirmed momentum rather than chasing volatility.
That said, the liquidity obtained during this sweep provides opportunities for hedging strategies. For example, a short position on the other hand can help limit risk while waiting for the market to stabilize. Specific levels, such as the 50% wick fill around $2,110, could provide interesting shorting opportunities after a bearish MSB has formed.
Furthermore, like Bitcoin, Ethereum left a significant Fair Value Gap (FVG) during the aggressive leg higher, with the 50% level of this gap reaching almost ~$1,970. Should price retest this FVG, it could provide a favorable setup for long entries after a reversal, highlighting potential areas for strategic accumulation.