Ethereum is showing signs of recovery breakout after the reversal of the corrective price channel. This change suggests the beginning of an impulse wave, signaling a potential forceful upside impulse. Traders should watch for confirmation above key levels as the path to the next rally begins to take shape.
Wave 3 on the move: preparing for a forceful upward move
By charting the expected path for Ethereum on the 4-hour time frame, Elliott Waves Academy has already done so revealed a significant opportunity to experience a fresh wave of growth. The price seems to be preparing for a forceful augment after successfully breaking the corrective price channel.
The technical structure indicates that Ethereum is likely to form a wave 3 of (3), and current forecasts show the asset achieving a minimum extension of 161.8%. However, internal dynamics suggest the potential for the movement to expand further, signaling that earnest, impulsive growth is now officially underway.
From a strategic perspective, any short-lived downward corrections will be seen as an opportunity for long entries with high probability. These miniature pullbacks serve to reset local indicators while the main trend remains significantly higher. Traders currently see the $2,624.14 level as their main target, with a possible move towards a 261.8% upside if the positive momentum continues.
To confirm and maintain this bullish scenario, it is extremely essential to confirm the breakout and maintain the trade above the previous price channel. Staying above this structural line will strengthen the upside outlook and provide the necessary support for the next stage of the rally.
Ethereum Hits a High: Buyers Are Moving In
According to Lennaert Snyder, Ethereum recently hit record highs and liquidity, setting the stage for a noticeable rebound after testing the extremes of the current range. The move reflects a forceful rebound following aggressive price action and shows that buyers are actively defending key levels.
Traders looking at local setups are advised to be cautious. Given the recent massive move, it is best to wait for clearer directional signals before entering positions, ensuring that trades stay in line with proven momentum rather than chasing volatility.
That said, the liquidity captured during this cycle opens up opportunities for hedging strategies. For example, a brief position on the opposite side can facilitate reduce risk while waiting for the market to stabilize. Specific levels, such as the 50% wick fill around $2,110, could present captivating shorting opportunities following bearish MSB patterns.
Additionally, like Bitcoin, Ethereum has left a significant fair value gap (FVG) during its aggressive rally, with the 50% fair value gap level near ~$1,970. If price retests this FVG, it could provide a favorable setup for long reversal entries, highlighting potential areas of strategic accumulation.
