After analyzing some on-chain data and candlestick patterns, it seems that Ethereum's downward wave, which started on October 10th of last year, has reached a critical turning point. The rebound in mid-November last year, combined with the failure signals of the fifth wave decline on December 18th, has led many technical analysts to believe that the downward momentum has already exhausted.

From a larger cycle perspective, Ethereum is very likely to have re-entered the upward channel that began in April of last year, currently in the fifth wave position. According to wave theory expectations, there are several theoretical target levels for this upward move: a conservative estimate at $5,413; and in a more aggressive scenario, if the bulls are particularly strong, it could surge toward around $7,155.

Of course, technical analysis is just a reference. Whether it can hold above key support levels and whether subsequent trading volume can cooperate will require ongoing observation. But from the current pattern, this bottom zone is indeed worth paying attention to.