Artem Voloskovets
Ethereum is at a crucial technical turning point. After pulling back from recent highs, the world's second-largest cryptocurrency is now consolidating in a tight range between $4,235 resistance and $4,056 support. Which level breaks first could determine whether ETH launches into its next upward wave or slides into a deeper correction.
Current Setup: Between Recovery and Correction
According to Elliott Wave analysis shared by More Crypto Online, Ethereum appears to be in a Wave 4 consolidation phase, trying to establish a local bottom. Right now, ETH is trading around $4,144—caught between key Fibonacci retracement levels that define the current range:
- 23.6% retracement: $4,157
- 38.2% retracement: $4,101
- 50.0% retracement: $4,056
The corrective A-B-C pattern suggests selling pressure might be easing, but confirmation depends on what happens next at these critical levels.
Bullish Case: Wave 5 Breakout If Ethereum pushes above $4,235, it would likely confirm the start of Wave 5—signaling the uptrend is back on. This could target the $4,400–$4,700 range, where major resistance lines up with historical highs.
Bearish Case: Deeper Correction A drop below $4,056 would invalidate the bullish setup and extend the Wave (c) correction. In that case, ETH could fall toward the 50% retracement at $3,861 or even the 61.8% level near $3,765. This would likely form a diagonal pattern—volatile, but potentially setting up a stronger base for the next move up.
Broader Context
Ethereum's price action continues to mirror the wider crypto market. While Bitcoin hovers cautiously near $70,000, ETH has shown relative strength by holding higher lows recently. Traders are waiting for a clear signal—either a breakout or rejection—to set the tone for November.
Meanwhile, institutional interest and growing Layer-2 activity are providing some fundamental support that could help limit downside risk over the medium term.
Ethereum's next few sessions are critical. A confirmed break above $4,235 could ignite Wave 5 and push ETH into its next leg up, while losing the $4,056 support might extend the correction toward $3,800.
For now, these levels are the key lines in the sand—determining whether Ethereum's next move is a breakout or a deeper pullback.
Artem Voloskovets
