Fundstrat: Ether’s ‘3-Wave Pullback’ Nears Completion, $5.5K Target in Sight

Technical Analysts Eye End of Ethereum’s Correction Cycle

After nearly two months of sideways movement, Ethereum may be on the verge of a sharp breakout, according to Fundstrat Global Advisors. The firm’s latest technical note points to the completion of a “three-wave pullback” structure, projecting a potential rally toward $5,500 in the next leg of the bull cycle.

Ethereum Consolidates Ahead of Catalysts

Ether (ETH) traded around $2,920 on Friday, down 1.2% over the last 24 hours but still up 24% year-to-date. The market’s attention has shifted to network fundamentals and ETF activity after the U.S. SEC’s partial greenlight for spot ETH ETFs earlier this quarter.

Fundstrat’s analysis suggests the current correction aligns with a classic Elliott Wave pattern, often seen mid-cycle before an extension move. “The structure resembles the second wave of a five-part bull sequence, which historically precedes sharp rallies,” said Mark Newton, head of technical strategy at Fundstrat.

Institutional Flow Still Lagging

While Bitcoin ETFs dominate capital inflows, Ethereum-linked products have yet to attract significant demand. Data from CoinShares shows just $72 million in ETH ETF inflows this week—barely 3% of Bitcoin’s total. That underperformance, however, may be setting up a rotation once Bitcoin’s momentum plateaus.

The Psychology of Patience in an Overcrowded Market

Investor sentiment around Ethereum remains cautious. Social data indicates declining mentions of ETH across major trading forums, reflecting boredom rather than fear. Analysts argue this “apathetic phase” often precedes breakout moves as speculative capital rotates back once volatility compresses.

Should Ethereum reclaim the $3,200 level with strong volume, traders expect renewed momentum that could push prices above $5,000 into early 2026.

For now, patience may be the smartest trade.