Ethereum trades near $3,600 with renewed bullish momentum after short-term declines. Elliott Wave analysis suggests Ethereum may face one more corrective leg before continuation. Long/short ratios indicate increasing optimism despite near-term bearish technical signals.
Ethereum remains at a crossroads as technical indicators signal mixed sentiment between short-term recovery and potential bearish continuation. Market data and Elliott Wave analysis reveal uncertainty before the asset’s next decisive move.
Possible Corrective Phase Within Broad Elliott Wave Structure
The Ethereum (ETH/USD) three-day chart shared by analyst BigBullMike7335 illustrates a detailed Elliott Wave framework suggesting a potential bearish count. It is under an upward channel price consolidation after a previous increase although it is at an area close to the previous $3,400-$3,600 band. This formation suggests that Ethereum is yet to get through a remedial process and possibly a larger extension is yet to form.
The chart identifies a large A-B-C corrective formation. Wave A formed after a sharp decline, followed by a recovery defining Wave B’s structure. The ongoing Wave C appears to be evolving within a symmetrical triangle, a setup typically reflecting indecision between buyers and sellers. The triangle’s eventual breakout or breakdown is expected to define Ethereum’s next primary trend direction.
There is also a visible head-and-shoulders shape which denotes the possibility of having a mid-term resistance. The neckline, billed between $2,800 and $3,000, is a key support. A decline below this area may substantiate the pessimistic outlook, perhaps to Fibonacci retracement points at around $2,600 and $2,200. These levels are coincident with important volume nodes, which increases their significance as the possible points of reaction.
Volume Profile and Momentum Indicators Reflect Market Caution
The accompanying volume profile displays dense trading activity between $2,400 and $3,000, forming a strong demand region. Above this range, volume remains concentrated, while a decline below $2,400 could lead to accelerated downside movement due to thinner market participation. This establishes a clear structural range where Ethereum’s next move could take shape.
At the bottom of the chart, momentum indicators (especially Stochastic RSI and RSI) are starting to drop even though the price is not changing. This dispersion suggests a declining purchasing power which is commonly followed by temporary drawbacks. Ethereum might revisit lower supports before gaining the force of momentum again, unless this momentum is regained.
The upper target of $16,528 on the chart is a long-term estimate, and it will be achieved only in case the corrective phase is completed successfully. The larger picture is neutral to cautious yet to be confirmed by the actions of the price in approximating the major mid-range areas.
Market Sentiment Recommends Newfound Optimism Despite Instability
Current market statistics as of writing on Coinglass indicate that Ethereum has been trading at an equivalent of approximately $3,613 per unit and that it has increased by 5.99% in the last 24 hours. The recovery of $3,427 indicates the short-term sentiment is getting better, albeit the 30-day return is still low at -5.92. In the lasting horizons, Ethereum has been on a consistent rise with a gain of 34.82% in 180 days and 15.42% in a year.
Trader sentiment further supports a cautiously optimistic outlook. Binance’s ETH/USDT long-to-short ratio sits at 2.0075, while top traders hold 2.296. On OKX, the ratio stands at 1.56, and Binance’s top trader position ratio rises to 2.8267, showing that experienced traders lean bullish despite potential corrections.
Liquidation data shows short liquidations of 788K with long liquidations of 151K, which indicates that most short positions were taken by surprise by this recent rally. The imbalance indicates that traders expect prices to remain strong above $3,600, but volatility is likely to remain until Ethereum proves to have broken out of its corrective structure.