Ethereum’s recent rebound has provided a short-term sense of relief, but a bigger challenge still lies ahead. While the price is trying to stabilize after weeks of sideways moves, the broader structure suggests the move is more corrective than decisive. Until ETH breaks the $3,550 barrier, the rebound looks more like a pause in consolidation than the beginning of a sustained rally breakout.
Sideways correction continues to dominate the Ethereum structure
According to to More Crypto Online, Ethereum continues to trade in a sideways correction structure that has been in effect since November 21. Price action remains confined below the upper boundary of this corrective trend channel, signaling that the market has not yet demonstrated a convincing move towards a broader bullish phase.
At this stage, a break above the correction channel is a minimal indication that upward momentum may be developing. Even if Ethereum does rise, caution is still warranted. Any advance from current levels may 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 move may be corrective rather than the beginning of a sustained rally.
For the more bullish orange scenario to gain real credibility, Ethereum would need to decisively reclaim the $3,550 resistance level. A neat breakout and a hold above this zone would aid confirm a stronger breakout structure and reduce the risk of the move being just a momentary bounce.
Until such confirmation occurs, the probability of another down test remains elevated. Overall, the technical structure continues to favor consolidation or further declines over immediate bullish continuation, keeping the market in a cautious mode.
ETH mirrors Bitcoin’s range behavior
In the newer one updateCrypto Candy noted that Ethereum continues to mirror Bitcoin’s price performance, remaining locked in a well-defined range of $2,700 to $3,400. ETH’s price has remained largely stagnant over the past few sessions, pointing to indecision in the broader market as participants wait for a clearer directional signal.
However, ETH recently found support in the demand zone at $2,600-$2,700, where buyers stepped in and triggered a short-term rebound. This reaction has allowed the price to begin a pullback towards higher levels in this range, suggesting that downward pressure is easing for now. If momentum continues to boost, a move towards the upper boundary around $3,400 could regain sharpness.
For the bullish sentiment to remain valid, the $2,600-$2,700 support area must continue to hold. A neat break below this zone would undermine the current recovery attempt and reopen the door to deeper declines.
