Ethereum (ETH-X) is currently recovering, but on the 4-hour chart, price action appears to be forming a WXY corrective structure within wave 4. Within this pattern, wave Y is likely developing. The recent slow and corrective decline can be labeled as subwave (B) of Y, suggesting that the correction is still unfolding rather than complete.
If this interpretation remains valid, Ethereum may still be building a final subwave (C) of Y. This move could drive price back toward the $2600 resistance area, where sellers may reappear and cap further upside. Such a rally would likely complete the wave 4 structure before a renewed bearish phase begins.
However, the bearish scenario strengthens if the price loses key structural support. A decisive break below the rising channel support line, combined with a sustained move under the $2000 level, would suggest that wave 4 has ended and wave 5 is already underway.
In summary, Ethereum remains in a corrective phase within a larger bearish framework. While short-term upside toward $2600 remains possible as part of wave 4 completion, the broader structure continues to point toward potential downside continuation once the correction finishes.
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