The attached chart clearly illustrates that Ethereum’s current price action is following a classic Elliott Wave structure, with three major impulsive waves completed and the market currently consolidating within the fourth corrective wave.
Ⅰ. Completed Waves
Wave C (the bottom): Marked the starting point of the new bullish cycle, around the $1,700 – $1,800 levels.
Wave 1: The initial impulsive rally, reaching $2,900 – $3,000.
Wave 2: A sideways/ corrective decline, which respected the previous bottom and maintained the overall bullish structure.
Wave 3: The strongest and most extended impulsive wave, pushing price aggressively to $4,800 – $4,900, showing the typical momentum associated with third waves.
Ⅱ. Current Phase – Wave 4
Price is consolidating within a descending contracting triangle, which is typical of a fourth-wave correction.
The key support lies at $4,050, acting as the main level to preserve the bullish Elliott structure.
Wave 4 is usually more complex and sideways than Wave 2, which fits well with the current market behavior.
Ⅲ. Outlook – Wave 5
As long as $4,050 holds without a daily close below it, the most likely scenario is the start of the fifth impulsive wave upward.
This wave is expected to break above the Wave 3 peak at $4,800 and extend into new highs.
Potential upside targets: $5,200 – $5,500, with room for higher levels if institutional momentum drives further expansion.
Conclusion:
Ethereum is unfolding within a clear Elliott Wave bullish cycle. The ongoing Wave 4 correction is consolidating around the $4,050 support level, which is the key pivot to watch. Holding this zone increases the probability of a Wave 5 rally, potentially driving ETH to fresh all-time highs in the coming weeks.
