An analyst from More Crypto Online says Ethereum may still be headed for lower prices, even after holding above a long-running yellow trend line that capped much of the bear market.

The chart setup matters because ETH’s rebound from the June low has so far produced only a three-wave advance into resistance, rather than the five-wave structure the analyst wants to see before calling a durable market bottom.

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Ethereum broke above the trend line in July and has since tested it from above, but the analyst said there is little evidence that price is decisively moving away from it. That keeps the current setup important for traders watching whether the move becomes a more established reversal or remains part of a broader corrective phase.

In the analyst’s view, the broader trend remains bearish, with upside moves still looking “choppy” and corrective rather than a sustained momentum shift.

Resistance near $2,045 remains the bullishness test

The immediate bullish scenario would see ETH grind higher into the upper part of its resistance range. The analyst identified $2,045 and $2,246 as the next Fibonacci resistance levels, arguing that bulls could still push price into that zone before any larger decline resumes.

But the bearish alternative remains the preferred larger-picture view. A more direct drop could target $1,500, then $1,400, with roughly $1,000 marked as the next major support area below.

The analyst compared the current setup with Ethereum’s post-February rally, when a gain of more than 30% was followed by a messy consolidation and then a sharper May selloff. That comparison is not presented as a guarantee, but it is the reason the current structure is being watched closely: Ethereum has already shown that strong rebounds can stall before resolving into a larger move.

Still, the analyst noted that bear-market rallies often take time and unfold unevenly, while declines tend to accelerate quickly once selling pressure takes hold.

A five-wave drop would strengthen the near-term bear case

On the one-hour chart, the analyst sees only three waves lower from the July 26 high. ETH was testing a white trend line near $1,870, while the August 1 low around $1,820 was described as the key short-term breakdown point.

If Ethereum falls below that low, it could complete a five-wave decline, albeit an overlapping and “not the cleanest” one. The analyst said such a formation could qualify as a leading diagonal, potentially followed by a wave-two bounce before a more forceful third-wave move lower.

Below $1,820, the next cited support is $1,763. The analyst also highlighted $1,588 as the main support area under current prices.

Until a meaningful upside impulse emerges, More Crypto Online’s analyst sees lower prices as the more likely eventual outcome, whether Ethereum first rallies toward $2,045 or declines directly.