Ethereum

August 31, 2025 at 23:43

Ethereum price outlook: waiting for confirmation as targets eye 4700–4900

Here's my take on the August 23 market update for Ethereum. I expected BTC-like momentum below $4,000 for a week, but that scenario now seems unlikely. The move at around $4,260 was aggressively bought, forming the classic ABCDE correction pattern. After breaking out of the triangle, we appear to be in a second wave, with a potential third impulse targeting roughly $4,700–$4,900.

Source available for registered users Sign Up Free

Analysis

Price action suggests a corrective pattern that completed an ABCDE pullback near $4,260. The break from the triangle implies a potential second wave with a proposed third impulse toward $4,700–$4,900. The actual drawdown was about 10% rather than the anticipated 20%, indicating bears faded as they pressed for a larger move. This sets up a scenario where upside momentum depends on confirming higher highs and sustained closes above recent resistance.

Historically, September is weak for crypto, but there are exceptions when macro conditions improve or new catalysts emerge. If Ethereum can reclaim and hold above the $4,200–$4,260 area with a daily close, the path toward $4,700–$4,900 becomes more plausible. Conversely, a break back beneath $4,200 could invalidate the bullish impulse and suggest a deeper retracement or consolidation phase.

Key risk factors include macro pressure, regulatory developments, and on-chain dynamics like funding rates and wallet activity. Traders should watch for confirmations from momentum indicators and volume to validate the impulse scenario rather than relying on a single pattern.

Recommendation

Recommendation: wait for a clear confirmation before initiating new Ethereum exposure. If price stabilizes and closes above $4,260 with sustained volume, consider a cautious long setup toward $4,700–$4,900, with predefined risk controls (e.g., stop below $4,200). If Ethereum fails to hold the $4,200 level, prepare to reassess and possibly adopt a neutral or defensive stance until new catalysts appear.

Trade plan: use tight risk management, confirm with multiple signals (momentum, volume), and avoid over-committing in a potentially volatile September. If you already hold long, consider trimming or adjusting stops to protect against a deeper pullback while monitoring for a breakout impulse.

Disclaimer

The Analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.