Ethereum News Today: Ethereum Faces 10% Correction After Reaching $3,675 Peak

Ethereum (ETH) recently reached a high of $3,675, completing what analysts refer to as wave 5 in its price movement. This peak suggests a potential exhaustion of the current bullish trend, with technical indicators pointing towards an imminent correction. The visible volume profile indicates that $3,560 is a critical zone where Ethereum may pause during its expected decline.

The Relative Strength Index (RSI) divergence and the stochastic reversal signal that Ethereum could drop to $3,447 before any potential bounce. This forecast is supported by the formation of a rising wedge pattern, which carried the price from $3,528 to $3,675, aligning with the 1.618 Fibonacci extension. The price briefly exceeded the 3.618 extension but failed to sustain momentum, indicating a lack of strong participation and significant resistance at this level.

The current candle structure shows bearish divergence on both the RSI and Stochastic Oscillator. The RSI remained below its previous high while the price climbed, signaling weakening strength. The Stochastic Oscillator has shown a downward cross, indicating a loss of buying pressure. Volume remained subdued compared to earlier peaks, further suggesting that the breakout lacks strong support.

ETH faces potential retracement zones at $3,584 and $3,528, corresponding to the 0.618 and 1.0 Fibonacci levels respectively. These levels align with prior support and may serve as initial bounce points. Below these, the $3,447 area forms the next possible demand zone as it coincides with historical lows. The corrective path labeled (a)-(b)-(c) has started to take shape, and the projected wave (c) appears to extend lower, suggesting ETH may revisit $3,528, then break toward $3,447 in a steeper move.

Price rejection at the top of wave five and a bearish engulfing candle confirm the weakening trend. The Ichimoku Cloud shows thinning support, while the price trades near the edge of the conversion line, indicating vulnerability to reversal. Should ETH breach the $3,584 level, a rapid decline could follow, especially with insufficient volume to support consolidation. This potential downturn aligns with the forecasted wave C bottom, completing the ABC correction structure.

The volume profile histogram highlights $3,560 as the most traded zone in the recent session. This value area acts as a magnet and could slow down the correction if price reaches this region. However, should selling volume spike, ETH may fall through this liquidity wall quickly. Price history suggests $3,447 serves as a key support, with previous rebounds occurring at this point. Traders may monitor this area for potential long entries or further breakdown signals.

The Bollinger Bands on the chart are beginning to expand after a tight squeeze, suggesting a volatile move is incoming. Directional confirmation will depend on how price reacts to $3,584 and $3,528 support levels. Despite short-term bullish structure, technical evidence now points toward a correction that may last through July 20. If wave five has peaked, then Ethereum’s bullish rally may soon give way to a broader ABC correction. Volume, momentum indicators, and price structure all favor a deeper pullback.