Ethereum Reaches Key Resistance Zone: Potential Butterfly Pattern Indicates Bullish After Pullback | ETH Price Prediction and Technical Analysis

The current Ethereum price movement is at a critical moment. The ETH/USDT trading pair is testing the $2,590 high time frame resistance level, which is technically significant as it perfectly aligns with the 0.618 Fibonacci retracement level and the middle band of the current Fibonacci price channel. Although bullish momentum still exists, this area may form a short-term top, triggering a wave of healthy technical pullback, laying the groundwork for a larger breakthrough later on.

🔑 Three Core Technical Points:

Key Resistance Convergence Zone ($2,590):

• Ethereum is facing strong resistance at the $2,590 region.
• This area is the Key Fib Level 0.618 and the technical confluence of the Channel Midpoint.
• Historical resistance level is also near this area, increasing its significance.

Potential Butterfly Pattern Brewing ( Harmonic Trading Opportunity ):

• A potential Bullish Butterfly Harmonic Pattern is forming.
• The validity of this pattern requires the completion of its C wave pullback (Leg C Pullback), after which the anticipated bullish D wave (Bullish Leg D Continuation) can be initiated.

Ideal pullback target level ($2,226):

High Time Frame Support at $2,226 is the ideal target area for a Wave C pullback.

• This position also converges with Fibonacci Price Channel Support (Channel Support), forming a Strong Support Zone.

📊 Current Market Structure and Potential Paths:

Ethereum has recently rebounded strongly to the $2,590 area. This area is not only a psychological round number but also a key Fibonacci resistance level. This resistance level is determined using the Fibonacci retracement tool drawn from the previous high to the recent swing low of $1,920 (0.618 position), and it is also located at the middle band of the broader Fibonacci price channel.

The convergence of these multiple technical indicators reinforces the view that Ethereum may temporarily encounter resistance in this area before resuming its upward trend. It is noteworthy that a bullish butterfly harmonic pattern is forming in the current structure. For this pattern to be valid, its C-wave pullback must be completed, which means that the price may pull back to the $2,226 area—this position is the intersection of high time frame support and channel support.

If the price successfully retests the support level and stabilizes, it will confirm the completion of Wave C and lay the foundation for the continuation of the bullish Wave D. The theoretical target for Wave D points to the $3,200 area, which corresponds to the upper band of the price channel and is another important high time frame resistance zone (HTF Resistance Zone).

Volume and Price Structure will be key to validating this scenario. The current volume is relatively low, which means that any attempt to break through the $2,590 resistance will require a significant surge in buyer interest to sustain effectively.

🔮 Future Price Movement Outlook:

• Long-term trend: On higher time frames, the overall trend of Ethereum remains bullish. Short-term expectations: A healthy pullback from the $2,590 resistance level is both expected by the market and a sign of a healthy technical situation.
• Key Scenario: If the price successfully pulls back to the $2,226 area and finds support here, it will complete a potential Butterfly Pattern Setup, paving the way for the price to subsequently hit the $3,200 target level. The prerequisite for this scenario is that the support level is effectively maintained, and that trading volume significantly increases in the next round of upward movement.