Ethereum (ETH) maintains a bullish higher-time-frame structure, although short-term price action suggests a potential correction toward 2,000–2,250 before the next rally begins.
According to the Elliott Wave Principle, ETH has completed a five-wave advance from its June low, signaling a possible transition from prolonged consolidation to a new bullish cycle.
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Ethereum peaked at $2,804 before declining to approximately $2,323, breaking below the critical 2,427–2,358 support zone. This breakdown suggests that the initial bullish impulse has ended and a larger Wave-II correction may be underway.
Second-wave corrections typically retrace a substantial portion of the preceding advance without fully reversing its origin. Therefore, the current weakness may represent a corrective reset rather than a complete bullish trend reversal.
Elliott Wave Structure Points to $2,150 and $2,000
The decline from $2,804 appears to contain five smaller waves, potentially forming Wave-a within an ABC zigzag correction. This pattern follows a 5-3-5 structure, with five waves in the initial decline, three in the rebound, and five in the final downward leg.
Ethereum could first develop a Wave-b recovery toward 2,575–2,675, with a central target near $2,625. From $2,323, this would represent an approximately 13% rebound. This recovery would not necessarily confirm a renewed uptrend. If ETH encounters resistance within the projected zone, selling pressure could resume as Wave-c develops.
The primary downside target is approximately $2,150 ± $100, establishing a projected range of 2,050–2,250. This area aligns with the anticipated completion of the broader second-wave retracement, which typically gives back 50%–76.4% of the preceding advance.
A decline from $2,323 to $2,000 would represent approximately 13.9% downside, while a drop from the $2,804 peak to $2,000 would amount to approximately 28.7%. These are technical projections, not guaranteed outcomes; an extended C-wave could produce deeper losses depending on market momentum and liquidity.
Critical Ethereum Support and Resistance Levels
Ethereum’s immediate outlook depends on whether buyers reclaim broken support or selling pressure drives prices lower. The 2,427–2,358 zone now represents critical resistance. Reclaiming this range would reduce immediate downside pressure, although further confirmation would be needed to invalidate the corrective scenario.
The 2,575–2,675 resistance zone is the next area to monitor during a potential relief rally. Rejection here would strengthen the probability of another downward leg.
On the downside, $2,250 marks the upper boundary of the projected correction, while $2,150 represents the central target. The 2,000–2,050 region becomes increasingly relevant if bearish momentum accelerates.
Long-Term Ethereum Forecast: 6,250–9,000+
Despite near-term downside risks, Ethereum’s long-term technical outlook remains bullish under the proposed Elliott Wave structure. Its multi-year Wave-4 consolidation resembles an extended bullish flag or triangle, a pattern that can precede a significant directional expansion.
The longer consolidation may provide the foundation for a substantial move if resistance breaks convincingly.
The five-wave advance from the June low supports the possibility that Wave-5 is developing within the broader bullish cycle. A completed correction could therefore precede another impulsive rally toward new highs.
The primary upside target stands near $6,250, with an extended projection of $9,000 or higher if bullish momentum strengthens. From $2,323, these levels imply potential gains of approximately 169% and 287%, respectively.
Such projections depend on a completed correction, sustained buying pressure, and favorable conditions across the broader cryptocurrency market.
The $4,150 level remains a key higher-time-frame breakout threshold. A sustained move above it would strengthen the bullish scenario and support the projected upside targets. Failure to establish a durable breakout, however, could prolong consolidation or undermine the forecast.
Meanwhile, the monthly Relative Strength Index (RSI) has moved out of a historically significant low-risk accumulation zone. Although this supports a potential bullish cycle transition, RSI alone cannot confirm a sustained uptrend.
Conclusion: Ethereum Correction Could Precede Another Bullish Impulse
Ethereum’s decline from $2,804 to $2,323 suggests that a larger Wave-ii correction may be underway following its five-wave advance. The projected path includes a rebound toward $2,625, followed by a possible decline toward $2,150, with $2,000 remaining a plausible downside target.
Nevertheless, the broader bullish scenario remains viable if ETH establishes a durable bottom and breaks above $4,150. The longer-term targets of 6,250–9,000+ depend on confirmation of the anticipated wave structure and renewed buying pressure.
Until then, support and resistance levels, momentum indicators, trading volume, and the integrity of the Elliott Wave count will remain essential in determining whether Ethereum is preparing for its next major advance.