Ethereum is entering a crucial zone as various indicators - institutional inflows, on-chain activity, and technical structure - signal an impending massive move. With market uncertainty, ETH shows remarkable resilience, bolstered by increased interest from whales and buying signals. This week could be decisive: will we see a strong rebound or a bullish acceleration towards a new key area?
The weekly chart of Ethereum currently reveals a particularly interesting technical configuration: a potential bearish ABC harmonic pattern. This classic technical analysis structure typically identifies reversal zones favorable to a significant bullish move during the formation of the CD leg.
The construction of this pattern began at Point A, positioned near $2,188.98. ETH then initiated a vigorous bullish impulse up to Point B, before triggering a sharp correction that brought it down to Point C at $2,624.88. This low level now constitutes a critical support for the validity of the setup. The bullish reaction observed from this floor, with a rapid bounce above $2,875, reinforces the hypothesis of a CD leg currently forming.
The key technical element remains the 100-week moving average, currently positioned at $3,053. A confirmed weekly close above this MA would constitute a powerful technical signal to validate the return of a structural bullish dynamic. The buying volumes observed during the bounce from $2,624 suggest that institutional buyers are actively defending this zone.
If the harmonic scenario fully materializes, the Potential Reversal Zone (PRZ) calculated via the Fibonacci extension 1.187 places the final target of the pattern near $5,391.87. This represents an upside potential of approximately 86% from current levels, a move perfectly consistent with the characteristics of harmonic patterns on long timeframes.
For this scenario to unfold, several technical conditions must be met. First, the support at $2,624.88 must absolutely not be broken on a weekly close. Second, ETH must maintain its price above the 100-week MA and ideally transform this level into support. Volumes must also accompany the progression to confirm the strength of the move.
Experienced traders are also monitoring intermediate levels, particularly the psychological resistance of $3,500 and the former consolidation zone around $4,000. These areas could generate temporary profit-taking before continuation toward the final target. Caution remains warranted: a violent rejection below $2,624 would completely invalidate this harmonic structure and open the door to a deeper correction, potentially toward $2,200.
Beyond chart analysis, several fundamental elements could catalyze this Ethereum rebound. The approach of the network’s next upgrade and the constant increase in institutional staking reinforce the medium-term bullish narrative. Inflows into spot Ethereum ETFs in the United States also show signs of progressive accumulation.
The macroeconomic context also plays a crucial role. Ethereum’s current correlation with U.S. equity indices and Bitcoin strongly influences its short-term volatility. Stabilization of traditional markets could unlock the bullish potential identified by the harmonic pattern. Professional traders are already positioning their stops below Point C to limit risk while targeting the PRZ.
The timeframe for this structure typically extends over several weeks. The upcoming weekly closes will be decisive to confirm or invalidate this scenario. Momentum indicators like the weekly RSI currently show a bullish divergence, reinforcing the hypothesis of an imminent technical rebound.
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