• Ethereum Price Update: Key Support Holds Amid Market Volatility

    Ethereum Reacts to Critical Support Zone

    Ethereum has shown signs of resilience as it bounced off a critical support area yesterday. The recent movement ended in a clear three-wave rally, signaling potential stability amid market uncertainty.

    Promising Signs, But No Confirmation Yet
    Despite the promising upward momentum, there isn’t enough evidence to confirm that Wave 2 has reached its bottom. Short-term volatility, partly fueled by distortions from Trumpcoin, continues to influence the smallest market patterns, complicating the analysis.

    Across the crypto market, the overall outlook remains stable for most coins. Meme coins continue to struggle, with the exception of Trumpcoin. Ethereum, however, appears to follow a five-wave upward trajectory starting from the January 13th low.

    $3,034: The Key Support Level to Watch
    Analysts believe Ethereum established a significant low on January 13th. This outlook will remain intact as long as prices do not break and sustain below the critical support level of $3,034. Market participants are watching closely for signs of a turnaround.

    First Reversal Signal Since December Decline
    For the first time since the market’s decline began in early December, Ethereum is showing a credible reversal signal. However, failure to maintain this momentum could lead to a retest of deeper support levels at $2,923, $2,698, or $2,470.

    Potential Wave B Bottom Confirmed
    The assumption that Wave B bottomed on January 13th remains intact. While there are no definitive signs of a third wave forming yet, early indicators like green candles suggest the potential for further upward movement. However, for now, the rally resembles a three-wave structure, which is insufficient for confirmation.

    What’s Next? Five-Wave Structure in Focus
    To confirm a broader trend reversal, Ethereum needs to develop a complete five-wave structure, including waves 4 and 5. If this occurs, analysts could label the sequence as wave 1, wave 2, wave 3, wave 4, and wave 5. Until then, the pattern remains inconclusive.

    $3,976 in Sight? Fibonacci Extensions Hold Promise

    If Wave 2 has indeed bottomed, Ethereum’s next target could be the 138% Fibonacci extension level at $3,976 or higher. A pullback after the initial five-wave move would further validate this scenario.

    Volatility Persists in Short-Term Patterns
    Short-term charts, particularly the 15-minute timeframe, highlight the potential for smaller wave formations. However, these movements are notoriously unreliable. A confirmed low requires a robust five-wave rally originating from a key Fibonacci retracement level.

    Breaking Key Levels Could Signal a Bullish Breakout

    The market’s reaction to the 61.8% Fibonacci retracement level suggests significant buyer interest. A break above the B-wave high at $3,527 could confirm an upside breakout, potentially taking Ethereum higher in the coming days

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