$ETH is currently sitting in a very sensitive zone after the late January liquidation phase. Yesterday’s bounce looks more like a potential B-wave recovery rather than the start of a strong impulsive move. The structure still feels corrective, not a clear trend reversal.
Ethereum is also underperforming Bitcoin right now. The ETH/BTC pair continues to trend downward, showing relative weakness compared to BTC. That’s something worth paying attention to. B-waves can be tricky. They often create the illusion of a fresh breakout, pulling traders in before another leg down follows.
Unless we see a clean 5-wave impulsive move to the upside or a strong break above the weekend high, the probability still leans toward further downside. For now, the key focus remains on the developing micro structure and how price reacts at critical levels.