Ethereum Update: Wave 5 Downtrend In Play After Wave 4 Correction

As we discussed Ethereum back on March 2, the daily chart was pointing toward a potential five-wave bearish impulse targeting the $1,300 support area. Fast forward to today, and that outlook remains largely on track. CLICK HERE for the past article

Ethereum continues its downward move on the daily chart, likely completing a five-wave bearish impulse toward the $1,300 support area — or possibly even lower.

Currently, on the 4-hour chart, Ethereum has already completed a projected abc correction during wave 4, turning sharply down from the recent resistance zone. This corrective phase gave traders a short-term opportunity to anticipate a bounce or minor recovery, but it also confirmed the larger bearish trend. The wave 4 structure hints that rallies from this point may be limited, as the broader trend favors further downside.

With wave 4 behind us, wave 5 may now be unfolding. A decisive move below the channel support line near $1,800 would increase the likelihood of wave 5 extending toward the $1,300 target. Traders should watch this level closely, as it could act as a pivot point for either temporary stabilization or continuation of the decline.

Additionally, price action in wave 5 may show increased volatility, especially around key support zones. While minor pullbacks are possible, the dominant trend currently favors lower lows, in line with the broader Elliott Wave pattern.

What Traders Should Watch

1. Channel Support: A slip below $1,800 would strengthen the wave 5 bearish scenario.

2. Resistance Areas: Any recovery from wave 4 might face strong resistance near previous highs around $2,200–$2,300.

3. Volume & Momentum: Look for acceleration on downward moves to confirm the strength of wave 5.