The Ethereum (ETH) price has fallen since the $1,660 resistance area rejected it on Jan. 21. The price could be correcting in anticipation of another upward movement.
ETH is the native token of the Ethereum blockchain, created by Vitalik Buterin. Since the year’s beginning, the price of Ethereum has been rising quickly. The $1,350 resistance zone and a declining resistance line that had been in place since Aug. 2022 were broken on Jan. 11. The price of ETH then climbed as high as $1,680, the maximum price in Jan 2023.
At an average price of $1,660, the 0.618 Fib retracement resistance level and a horizontal resistance from the main resistance area. Despite its high, the Ethereum price failed to reach a close above this area. Rather, it was rejected (red icon) and began a downward movement.
The $1,350 region is the closest horizontal support area if the downward movement continues. However, there is Fib support before it, which could stem the fall and provide the base for a potential reversal.
Despite the previous rejection, the ETH price created a bullish candlestick on Jan. 26 and could be in the process of making another breakout attempt.
ETH/USD Daily Chart. Source: TradingView
Ethereum Short-Term Price Prediction: Drop to $1,500 Before Massive Rally
While the price action does not provide a clear direction for the future trend, the wave count provides a bullish Ethereum price forecast. It suggests that the price of ETH is currently in wave four after an extended third wave (black). After wave four is complete, another upward movement would be likely.
While a more accurate target will reveal itself once wave four is complete, the first preliminary target is at $1,812, created by the 2.61 extension of wave one (white). Afterward, the next target would be at $2,097, created by the 3.61 extension.
As for the bottom of wave four, the 0.382 Fib retracement support level at $1,478 represents where the wave will most likely end. Besides being a Fib level, this would also validate the resistance line of a channel from which it previously broke out. However, due to the increase over the past 24 hours, it is also possible that the bottom of wave four is in. In this case, the price would likely consolidate inside a short-term triangle before an eventual breakout.
While the ETH price could fall a little deeper, a decrease below the wave one high at $1,244 (red line) would completely invalidate this count. The price of ETH would then fall below $1,200.
ETH/USDT Daily Chart. Source: TradingView
To conclude, the most likely Ethereum short-term price prediction is a decrease to $1,478 followed by a significant upward movement. A daily close above $1,660 would mean that the correction is complete, and an increase toward at least $1,800 is expected.