Ethereum's recent upward movement is being closely watched by analysts, who suggest that while the cryptocurrency has experienced a quiet bounce, it faces a significant test ahead. Trading within a corrective sideways structure that has persisted since November 21st, ETH's ability to clear the $3,550 mark will be crucial in determining if the current momentum is a sustained rally or merely a period of consolidation.
Ethereum's Consolidation Continues Amidst Key Resistance
Despite its recent rebound, Ethereum's price action remains contained within a corrective channel, preventing a decisive shift towards a broader bullish phase. Experts indicate that any upward movement at this stage could be interpreted as a corrective yellow B-wave within a larger cycle wave 5, or an extended phase of a cycle wave 4. Both scenarios imply that the upward trajectory is more corrective in nature rather than the onset of a new, sustained rally. For a truly bullish outlook, Ethereum must convincingly reclaim and hold above the $3,550 resistance level. A clear break above this threshold would significantly de-risk the current bounce and confirm a more robust breakout structure. Until then, the market remains in a cautious mode, with the technical structure favoring further consolidation or potential downside.
Mirroring Bitcoin: ETH's Range-Bound Behavior
Ethereum's price trends have largely mirrored Bitcoin's, maintaining a defined range primarily between $2,700 and $3,400. This stagnant period reflects market indecision, as participants await clearer directional cues. However, a recent surge of buyer interest found solid support within the $2,600-$2,700 demand zone, sparking a short-term bounce. This reaction has helped alleviate immediate downside pressure and could potentially drive the price towards the upper boundary of its current range, around $3,400. For the underlying bullish bias to remain intact, holding the $2,600-$2,700 support area is paramount. A breach below this level would signal a weakening of the recovery attempt and could open the door for deeper price corrections.
