Ethereum is trading in a critical zone with two separate outlooks on technical indicators that are connected but pointing in different directions. While the key level highlighted on the weekly chart is $1,100, another technical reading suggests that the current pullback could be the final correction phase before a stronger bullish wave.
Major support level on weekly chart
While ETH is hovering around $1,570, the weekly chart shows $1,100 as the main area for buyers to keep a close eye on. The fact that the price continued its downward movement after failing to hold around $ 2,900 in the first part of 2026 reveals that short-term momentum remains weak.
The $1,100 level has emerged as a strong long-term support area for Ethereum since 2021. If the price falls to this region and can remain here, a noteworthy entry area may be created for long-term spot investors.
If the $ 1,100 level is maintained, the first recovery target can be viewed as $ 2,000. After this region, $2,900 stands out as the next important resistance point.
However, ETH has not yet reached $ 1,100. Therefore, taking an early position around $1,570 means trading before it becomes clear whether the lower support band will actually be defended. A stronger technical outlook is looking for a significant reaction rally following a test near $1,100, a strong weekly close, or a higher bottom structure.
Unless this approval is received, it is considered that the downside risk continues. If $ 1,100 is maintained, first $ 2,000 and then $ 2,900 may come to the agenda again. If the momentum gains strength, the $ 3,900 and $ 4,800 levels can be watched again.
Possible third wave in Elliott Wave outlook
In the other technical scenario, Ethereum is trading near $1,623 while one analyst considers the current pullback as part of a larger Elliott Wave structure. Accordingly, after a five-wave rise from the 2022 lows to the 2025 peak, ETH completed a higher-order first wave and then entered the ABC correction structure.
Mini dictionary: Elliott Wave is a technical analysis approach that examines price movements in waves depending on investor psychology. In this structure, the third wave is generally considered the strongest part of the uptrend.
The chart shows that ETH is currently hovering near the bottom of wave C. According to the Elliott Wave approach, after the completion of the second wave correction, the third wave may begin and this phase is often associated with stronger upward momentum.
However, this scenario has not been confirmed yet. ETH remains near the lower boundary of the structure following the sharp decline from the $2,300 region. A recovery above $1,700 will be a sign of strength, followed by a more solid move towards $1,900 and $2,300.
If the price maintains the current bottom area and starts creating higher candles on a weekly basis, the view that the second wave correction is over may gain support. On the other hand, if the current support zone is lost and the last wave C bottom is broken, this count will weaken and the possibility that the correction is not yet complete will come to the fore.
