Ethereum Technical Analysis: Correction Nearing Completion as Structure Holds Firm

Ethereum has been consolidating around $3,800, and plenty of traders are feeling anxious. His point? While sentiment might be shaky, the chart tells a much calmer story. Ethereum's structure is holding up exactly as expected during a mid-cycle correction—and that could mean the next leg up is closer than it feels.

Chart Breakdown: What the Structure Says

But according to technical analyst Quantum Ascend, there's no reason to panic. In a recent chart update, he put it bluntly: "Literally nothing is broken — except CT's brain. Manage your emotions or you'll blow the next phase."

The daily ETH/USD chart shows a W–X–Y double zigzag correction—a common consolidation pattern that typically appears before another rally. Here's what stands out:

• Elliott Wave Sequence: ETH dropped from roughly $4,700 to $3,600 (Wave W), bounced back near $4,900 (Wave X), and is now working through the final correction leg (Wave Y). This isn't a reversal—it's textbook mid-trend consolidation.
• Key Fibonacci Levels: Price is hovering just below the 0.236 retracement at $3,954. Above that, resistance sits at $4,146 (0.382), $4,302 (0.5), $4,458 (0.618), and $4,679 (0.786). These zones will likely dictate ETH's next moves.
• Descending Wedge Pattern: ETH remains inside a tightening wedge, a setup that historically resolves to the upside. Support around $3,640 has held firm through multiple tests, while the upper boundary near $4,700–$4,900 marks the breakout zone to watch.

The takeaway? Ethereum is compressing between well-defined levels, building energy for what could be a significant directional move.

What Happens Next

Two levels matter most right now:

• Support at $3,640 — As long as this holds, the bullish case stays intact.
• Resistance at $4,700 — A clean break above this level would confirm the correction is over and could kick off a rally toward $5,000+.

Until then, ETH is in late-stage consolidation—more likely accumulation than breakdown.

Ethereum's chart looks a lot less dramatic than the chatter on social media suggests. The structure is intact, support is holding, and the correction appears to be nearing its end. If $3,640 continues to hold and ETH pushes through $4,700, the next rally phase could be around the corner.

For traders who can stay disciplined and tune out the noise, this setup might just be the setup they've been waiting for.