Ethereum is testing critical support this week. An analyst watching the charts sees a corrective bounce, not a genuine reversal. The three-wave advance from June lows lacks the five-wave structure that would signal a durable bottom.
ETH broke above a long-running yellow trend line in July and has since tested it from above, but there's little conviction behind the move. The broader picture still looks bearish. Upside moves remain choppy and corrective rather than a shift in momentum. The $1,820 level now acts as the immediate decision point, with bulls needing to push decisively higher to shift the narrative.
Resistance levels and the bear case
If bulls take control, the next targets sit at $2,045 and $2,246 on the Fibonacci ladder. Price could grind into that upper resistance zone before any larger decline resumes. But the analyst's base case tilts bearish. A sharper drop could target $1,500, then $1,400, with roughly $1,000 as the next major support below. The current setup mirrors Ethereum's post-February rally, when a 30% gain gave way to messy consolidation and then a sharp May selloff. Bear-market rallies take time and unfold unevenly, the analyst noted, while declines tend to accelerate quickly once selling pressure gains traction.
This material is informational only and not investment advice. Crypto markets carry substantial risk, and past patterns don't guarantee future outcomes.
