Ethereum is showing signs of a major breakout after reversing a corrective price channel. This change suggests the start of an impulsive wave, signaling strong potential bullish momentum. Traders should watch for confirmation above key levels as the path to the next leg begins to take shape.
Wave 3 in motion: preparation for a strong upward movement
Charting the expected path for Ethereum over a 4-hour time frame, the Elliott Waves Academy revealed a significant opportunity to ride a new bullish wave. Price appears to be preparing for a powerful upward push following a successful breakout of its corrective price channel.
The technical structure indicates that Ethereum will likely form wave 3 of (3), with current projections showing the asset reaching a minimum extension of 161.8%. However, internal dynamics suggest that this trend could extend further, signaling that a major impulsive rally is now officially underway.
From a strategic perspective, any temporary bearish correction would be considered a very likely opportunity for long-term inflows. These minor pullbacks serve to reset local indicators while the primary trend remains firmly upward. Traders are currently eyeing the $2,624.14 level as their primary target, with the possibility of a move towards the 261.8% extension if positive momentum remains sustained.
To validate and maintain this bullish scenario, it is essential to see a confirmed breakout and sustained trading above the previous price channel. Staying above this structural limit will strengthen the bullish outlook and provide necessary support for the next leg of the rally.
Ethereum Sweeps High Range: Buyers Step In
According to Lennaert Snyder, Ethereum recently reached its all-time high and liquidity, paving the way for a notable rebound after testing the extremes of its current range. The move reflects a strong rally following aggressive price action and shows buyers are actively defending key levels.
For traders looking at local setups, caution is advised. Given the recent massive move, it is best to wait for clearer directional signals before taking positions, ensuring trades align with confirmed momentum rather than chasing volatility.
That said, the liquidity captured during this sweep opens up opportunities for hedging strategies. For example, a short position on the opposite side could help mitigate risk while waiting for the market to stabilize. Specific levels, such as the 50% fill around $2,110, may present attractive short selling opportunities after a bearish MSB forms.
Additionally, like Bitcoin, Ethereum left a significant fair value gap (FVG) during the aggressive bullish phase, with the 50% level of this gap being near around $1,970. If price retests this FVG, it could provide a favorable setup for long entries after a reversal, highlighting potential areas for strategic accumulation.
