Ethereum Price Analysis: Wave (4) Correction Could Test $3,600–$3,300 Zone

Ethereum’s 21 and 50-day EMAs now slope downward, creating resistance, while the 200 EMA remains solid support for price stability.

RSI falling below 50 reflects lost momentum, but prior divergence is fully resolved, indicating that a correction is part of normal market cycles.

Wave (4) is projected toward the 1–1.27 Fibonacci extension, aligning with $3,600–$3,300 and setting the stage for wave (5) continuation.

Ethereum price action remains within a corrective phase, though analysts emphasize that the current structure does not warrant panic. Technical signals suggest that this stage could prepare the ground for further bullish continuation once corrections are finalized.

Market Sentiment and Technical Position

Crypto analyst Darkfost noted that panic has been increasing as Bitcoin moved toward $4,600, which influenced Ethereum sentiment. Many traders reacted cautiously, although he stressed that the overall structure still aligns with previous expectations on the daily chart.

He pointed out that the divergence previously identified has already been resolved and flushed out from the current price movement. Momentum weakness became visible when the Relative Strength Index failed to hold the 50 level, reflecting temporary market exhaustion.

According to Darkfost, this decline in momentum aligns with broader corrective behavior rather than a breakdown of long-term bullish trends. The analysis indicates that market sentiment is still consistent with the projected wave count for Ethereum.

Exponential Moving Averages and Support Levels

Darkfost further explained that Ethereum’s 21-day and 50-day exponential moving averages recently crossed and are now sloping downward. These levels are creating short-term resistance zones, contributing to the corrective tone in daily trading.

Concurrently, the 200-day exponential moving average has leveled off but is still a strong support level for the price. Traders are watching this level closely as it could be the lower limit for the current correction.

This positioning suggests that the correction remains within controlled parameters and aligns with broader market cycles. The stabilization of standard deviation also indicates that volatility may ease, allowing the market to consolidate.

Fibonacci Levels and Wave Structure

Darkfost assessed that wave (4) correction is still expected to extend toward the 1–1.27 Fibonacci range. The outlook implies that Ethereum could dip down to the $3,600 to $3,300 range before continuing to move higher

This decline would also reset the RSI and may establish the setting for the continuation of wave (5) once the corrective movement is complete. The structure of wave theory remains intact as long as this projected zone holds.

He emphasized that the present stage still provides an opportunity within a dollar-cost averaging zone, given the long-term trend outlook. For now, Ethereum remains technically positioned for bullish continuation after the ongoing correction phase concludes.

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