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▲ Ethereum (ETH)/AI Generated Image ©
Analysis suggests that Ethereum (ETH) has entered a major technical bottom zone after its recent sharp decline. Several technical indicators, including Elliott Wave theory, Moving Average Convergence Divergence (MACD), and Relative Strength Index (RSI), simultaneously point to a potential rebound, increasing expectations for a mid-to-long-term low formation.
According to investment media FXStreet on July 2 (local time), Dr. Arnout ter Schure of Intelligent Investing analyzed that Ethereum is entering a critical low formation phase based on the Elliott Wave Principle. He explained that after ETH rebounded to $2,626 in April, it was expected to maintain an upward trend 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 may also have concluded with five sub-waves. Simultaneously, he diagnosed that a bullish divergence is forming on the daily Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI), where prices have fallen but the 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, and then a move above $1,848, recorded on June 15, is required.
Positive signals are also appearing in long-term charts. According to the analysis, Ethereum has undergone three major downward waves since its all-time high in August 2025, and the current price is located in the long-term trendline support zone of approximately $1,575 (±$25). The monthly Relative Strength Index (RSI) has also entered a 'low-risk buying zone,' which is a pattern similar to just before major lows were formed in 2026, 2025, 2019, and 2018.
Furthermore, the price movement over the past five years has formed a large Bull Flag pattern, and the movement since October 2021 is analyzed to be most similar to an ascending triangle (a-b-c-d-e) structure based on Elliott Wave. However, as triangle patterns can temporarily break trendlines or vary in length, it was emphasized that various technical indicators should be considered alongside Elliott Wave.
Dr. Arnout ter Schure stated that a confirmed uptrend with higher highs and higher lows has not yet been established, so it cannot be concluded that a bottom has been definitively formed. However, he predicted that combining various technical grounds such as Elliott Wave, Moving Average Convergence Divergence, Relative Strength Index, and long-term trendline support suggests a high probability that a significant bottom is forming, 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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