Since the beginning of September, the price of Ethereum has been moving within a downward corrective trend after reaching its absolute high. As often occurs during such phases, this development raises key questions for market participants. Where could the correction potentially end, and at what point could a new entry become advantageous? At BITmarkets, this scenario has been examined in detail, and the findings are outlined below.

Ethereum technical analysis

ETHUSD - 1 Day Time Frame

The first factor worth emphasizing is the nature of the price delivery during the correction. Until September, price action was impulsive within the broader uptrend, while the current move toward the Fibonacci 0.5 retracement — the midpoint of the previous impulsive leg — has taken considerably more time. This slower descent indicates corrective price delivery rather than a shift in the long-term trend.

Following this observation, the entry setup becomes central, as it is the parameter that could signal the end of the correction. Before evaluating this, however, it is necessary to define the current market structure. From a long-term perspective, Ethereum remains in a bullish configuration, while the short-term structure is bearish, aligning with the ongoing corrective move.

Ethereum price target

On the attached chart, a key resistance zone within this internal bearish structure has been highlighted. This zone confirms bearish price delivery, meaning that only a daily close above this level could activate a valid buy scenario, with the primary target at the absolute high near the psychological $5,000 mark.

Additionally, a sweep of Sell-Side Liquidity occurred below the Fibonacci 0.5 level — an important component of the entry criteria. Conversely, if the price remains below the marked orange resistance zone, the buy scenario remains invalid, and continued downward movement could be expected, potentially pushing Ethereum toward lower levels.