Ethereum’s recent rebound brought a brief sense of relief, but the biggest challenge remains. As price attempts to stabilize after weeks of sideways action, the broader structure suggests this move remains corrective rather than decisive. Until ETH can break through the $3,550 barrier, the bounce looks more like a pause in consolidation than the start of a sustained bullish breakout.
Sideways correction still dominates Ethereum structure
According to More Crypto Online, Ethereum continues to trade within a sideways corrective structure in place since November 21. Price action remains capped below the upper boundary of this corrective trend channel, signaling that the market has yet to show a convincing shift into a broader bullish phase.
At this point, a break above the corrective channel is the minimum indication that bullish momentum could be developing. Even if Ethereum rises, caution is still required. Any advance from current levels could simply play out as a yellow B wave within a larger Circular Wave 5, or as an extended phase of Circular Wave 4. Both scenarios imply that the upward move could be corrective in nature rather than the start 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 clean breakout and holding above this area would help confirm a stronger breakout structure and reduce the risk that the move is just a temporary bounce.
Until such confirmation appears, the likelihood of another downward test remains high. Overall, the technical structure still favors consolidation or further decline rather than immediate bullish continuation, keeping the market in a cautious mode.
ETH Mirrors Bitcoin’s Range-Related Behavior
In a more recent update, Crypto Candy noted that Ethereum continues to mirror Bitcoin’s price behavior, remaining stuck in a well-defined range between $2,700 and $3,400. The price of ETH has largely stagnated over the past few sessions, indicating indecision across the market as participants wait for a clearer directional signal.
However, ETH recently found support at the $2,600-$2,700 demand zone, where buyers stepped in and triggered a short-term rebound. This reaction has allowed prices to begin to retreat towards higher levels within the range, suggesting that the downward pressure is easing for the time being. If momentum continues to build, a move towards the upper boundary around $3,400 could refocus attention.
For the bullish bias to remain valid, the $2,600-$2,700 support zone must continue to hold. A clear break below this zone would weaken the current recovery attempt and reopen the door to a deeper decline.
