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▲ Ethereum (ETH)/AI Generated Image ©
An analysis suggests that Ethereum (ETH) has entered a major technical bottom zone after its recent sharp decline. With several technical indicators, including Elliott Wave theory, Moving Average Convergence Divergence (MACD), and Relative Strength Index (RSI), simultaneously signaling a potential rebound, expectations for a medium-to-long-term low formation are growing.
According to investment specialized media FXStreet on July 2 (local time), Dr. Arnout ter Schure of Intelligent Investing analyzed that Ethereum is entering an important bottom formation phase based on the Elliott Wave Principle. He explained that after ETH rebounded to $2,626 in April, he expected the uptrend to be maintained if it held $1,938. However, this support level broke on June 8, leading to further declines, eventually falling to $1,510 on June 26.
He assessed that the recent decline appears to have completed a typical five-wave downtrend structure, and the final downward wave might also have concluded with five sub-waves. Simultaneously, he diagnosed that a bullish divergence is forming in the daily Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI), where prices have fallen but indicators are rebounding. However, for this analysis to be confirmed, it first needs to break above $1,777 to create a strong warning signal against bearishness, followed by a move above $1,848, recorded on June 15.
Positive signals are also appearing on long-term charts. According to the analysis, Ethereum has undergone three major downward waves since its all-time high in August 2025, and its current price is located in a long-term trendline support zone of approximately $1,575 (±$25). The monthly Relative Strength Index (RSI) has also entered a 'low-risk buying zone,' a pattern similar to just before major lows were formed in 2026, 2025, 2019, and 2018, he explained.
Furthermore, the price movement over the past five years has formed a large Bull Flag pattern, and the movement since October 2021 is also analyzed to be most similar to an ascending triangle (a-b-c-d-e) structure based on Elliott Wave principles. However, he emphasized that since triangle patterns can temporarily deviate from trendlines or vary in length, various technical indicators should be considered alongside Elliott Wave analysis.
Dr. Arnout ter Schure stated that an uptrend with higher highs and higher lows has not yet been confirmed, so it cannot be definitively concluded that a bottom has been formed. However, combining various technical bases such as Elliott Wave, Moving Average Convergence Divergence (MACD), Relative Strength Index (RSI), and long-term trendline support, it is highly probable that an important bottom is being formed, and a price confirmation process will follow.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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