Ethereum May Enter Controlled Wave 4 Correction Toward $3,600–$3,300 as 200 EMA Could Hold and RSI Resets

• Wave (4) target: $3,600–$3,300 (1.00–1.27 Fib)

• 21 & 50-day EMAs are acting as resistance; 200-day EMA remains key support.

• RSI < 50 shows momentum reset; divergence has been cleared, suggesting a normal corrective phase.

Ethereum correction insights: Ethereum correction targets $3,600–$3,300, with 200 EMA support; read key signals and next steps. (COINOTAG)

Ethereum trades in a controlled correction as wave (4) targets $3,600–$3,300, with 200 EMA support and RSI momentum reset.

• Ethereum’s 21 and 50-day EMAs now slope downward, creating resistance, while the 200 EMA remains solid support for price stability.
• RSI falling below 50 reflects lost momentum, but prior divergence is fully resolved, indicating that a correction is part of normal market cycles.
• Wave (4) is projected toward the 1–1.27 Fibonacci extension, aligning with $3,600–$3,300 and setting the stage for wave (5) continuation.

Ethereum price action remains within a corrective phase, though analysts emphasize that the current structure does not warrant panic. Technical signals suggest that this stage could prepare the ground for further bullish continuation once corrections are finalized.

What is the current Ethereum correction and why does it matter?

Ethereum correction is a controlled pullback consistent with a wave (4) scenario, expected to reach the $3,600–$3,300 zone. The move matters because the 200-day EMA acts as the primary support and the RSI reset suggests consolidation, not structural trend reversal.

How far can wave (4) extend and when will it end?

Wave (4) is likely to extend to the 1.00–1.27 Fibonacci extension range, which aligns with $3,600–$3,300. The correction ends once price stabilizes above key support (200 EMA) and RSI begins reclaiming the 50 level, signaling momentum recovery and setting a base for a wave (5) push.

Market Sentiment: What are traders saying?

Crypto analyst Darkfost observed increased panic alongside Bitcoin’s move toward $4,600, affecting Ethereum sentiment. He emphasized that prior divergence has been resolved and that current weakness aligns with corrective behavior rather than a breakdown of long-term bullish structure.

He noted the RSI failure at 50 and said this is a typical reset during corrective cycles. Traders should watch momentum indicators and the 200-day EMA for confirmation of the correction’s low.

What technical levels define support and resistance now?

Short-term resistance: 21-day and 50-day EMAs, both sloping down and limiting upside. Primary support: 200-day EMA, which is providing a structural floor. Watch the RSI for confirmation of momentum recovery above 50.

Fibonacci and wave structure: What targets should traders use?

Use the 1.00–1.27 Fibonacci extension as a guide for wave (4) completion. The $3,600–$3,300 band aligns with this range and with typical corrective amplitude for a daily wave (4). A confirmed bounce from this zone would validate the wave count toward wave (5).

Key price structure comparison

Frequently Asked Questions

How should investors react to the Ethereum correction?

Maintain position sizing discipline and consider dollar-cost averaging into the $3,600–$3,300 zone if it aligns with your risk profile. Technicals indicate consolidation, not collapse, provided the 200-day EMA holds.

Is the RSI below 50 a sell signal?

RSI < 50 signals momentum cooling but is not an automatic sell. In wave (4), a drop below 50 often resets momentum before a continuation; assess support at the 200 EMA and broader market context.

Key Takeaways

• Controlled correction: Wave (4) targets $3,600–$3,300 and looks like a normal retracement.
• Critical support: 200-day EMA is the main level to defend the bullish case.
• Actionable insight: Consider measured dollar-cost averaging within the projected Fib range if it fits your plan.

Conclusion

Ethereum correction remains a structured pullback with Ethereum price likely to test $3,600–$3,300 in a wave (4) scenario. With 21/50 EMAs as resistance and the 200 EMA providing support, the setup favors consolidation and potential continuation to wave (5) once momentum resets. Monitor RSI and the 200-day EMA for confirmation; COINOTAG will provide updates as the structure evolves.