Coinpaper
January 5, 2026 10:12 AM UTC

Ethereum Price Prediction: ETH Faces Wave 3 Downside Risk

Ethereum is under pressure after a fresh resistance rejection, while recent FOMC patterns show ETH has struggled after Fed meetings. Now, traders are watching whether ETH can hold key support or face another sharp post FOMC decline. Ethereum Price Faces Wave 3 Pressure After Resistance Rejection Ethereum remained under short term pressure after price failed to break resistance and turned lower on the 1 hour chart. The chart from More Crypto Online shows ETH trading near $2,241 after a rejection from the upper resistance area. The analyst said Ethereum is still working on wave 3 to the downside, which means sellers remain active in the current short term structure. ETH Short Term Wave Count. Source: More Crypto Online The key resistance zone for wave 4 sits between $2,290 and $2,334. If ETH rebounds, this area may act as the next test for buyers. A move into that range would not confirm a bullish reversal by itself. Instead, it could mark a corrective bounce inside the wider downward move. Ethereum also trades near the 38.2% Fibonacci level around $2,240. This level now works as a short term reference point. If ETH fails to hold near this area, the chart points to lower Fibonacci levels at $2,178, $2,119, and $2,037. The broader structure still shows price moving below a descending trendline. That keeps pressure on ETH unless buyers reclaim resistance and push price back above the marked wave 4 zone. For now, the chart suggests Ethereum remains vulnerable while it trades below $2,290 to $2,334. A stronger recovery would need a clear break above that zone. Until then, the downside structure remains in control. Ethereum Chart Shows Repeated Post FOMC Drops Ethereum has shown repeated weakness after recent FOMC meetings, according to the daily ETHUSDT chart shared by Ted. The chart shows four major post FOMC declines since October 2025. ETH fell 35.01% after the Oct. 29 meeting, 19.39% after the Dec. 10 meeting, 42.57% after the Jan. 28 meeting, and 17.50% after the March 18 meeting. Ethereum Post FOMC Price Drops. Source: Ted Pillows Now, ETH is trading near $2,323 after the April 29 FOMC meeting. The setup raises the same question again: whether Ethereum will repeat another post meeting decline or break the pattern. However, the chart only shows past reactions. It does not confirm that another drop will happen. Price action after FOMC can change based on rate guidance, inflation data, bond yields, dollar strength, ETF flows, and broader crypto market sentiment. Still, the repeated drops matter for short term traders because ETH has failed to hold momentum after several recent Fed decisions. Each marked decline started near or shortly after the FOMC date, then moved lower over the following sessions. For now, the key level is the recent range around $2,220 to $2,460. If ETH holds above the lower part of that range, buyers may prevent a deeper post FOMC move. But if ETH loses that area, the chart would look similar to the earlier breakdowns. The main takeaway is simple: Ethereum has a recent history of sharp post FOMC weakness. But the April setup still needs confirmation from price action, not only from the previous pattern.