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Ethereum (ETH) Approaches Key Breakout — Bullish Confirmation Needed

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • A symmetrical triangle breakout indicates a potential bullish continuation.
  • RSI divergence hints at a possible momentum shift.
  • Key resistance at $4,085 could determine future direction.

Ethereum (ETH) is currently in a corrective phase within a descending triangle, facing uncertain momentum while at a critical juncture.

Today, the price bounced from the descending support but is still within the boundary of the bearish structure.

Will it manage to break it in this advancement?

ETH Price Analysis

The daily ETH chart highlights a corrective phase following a five-wave impulsive structure, with price action forming a descending triangle. The correction bottomed near $2,915, slightly below the 0.618 Fibonacci retracement, before bouncing.

The price remains under pressure, and the lower boundary of the triangle is tested while consolidating above key Fibonacci levels.

ETH price analysis
ETHUSD support found | Credit: Nikola Lazic/TradingView 

ETH’s daily Relative Strength Index (RSI) remains in neutral territory, showing neither extreme overbought nor oversold conditions.

This suggests that Ethereum is in an accumulation phase, awaiting a catalyst for its next major move.

If the price can reclaim the 0.5 Fibonacci retracement level at $3,216, it could confirm the beginning of a new impulsive wave.

The current consolidation inside the wedge could indicate a potential bullish reversal.

However, failure to hold support at $3,012 may expose ETH to further downside toward $2,821. On the other hand, breaking above the $3,420 level would be an early signal of renewed bullish momentum, with the 0.236 Fibonacci level at $3,673 acting as the next major resistance.

ETH Price Prediction 

The 1-hour chart provides a detailed Elliott Wave projection, indicating that Ethereum may initiate a new five-wave impulse to the upside.

The breakout from the descending triangle could lead to a short-term rally, suggesting Wave (i) targets the $3,552 level. A corrective Wave (ii) pullback could test the $3,225 level before the next impulsive leg higher.

ETH price prediction
ETHUSD first bullish signs | Credit: Nikola Lazic/TradingView 

If Ethereum sustains momentum, Wave (iii) is expected to target the $3,900 to $4,082 range, aligning with Fibonacci extension levels of 1.272 and 1.618.

A healthy retracement within Wave (iv) could provide a buying opportunity near $3,755, followed by a final push in Wave (v) toward the $4,285 to $4,429 range, representing the 2.0 and 2.272 extensions.

A key invalidation level for this bullish scenario is a breakdown below $3,012, suggesting that the corrective phase is incomplete.

Conversely, a strong move above $3,678 would reinforce the bullish thesis, signaling continued upside potential.

Key Levels to Watch

  • Immediate Resistance: $3,673 (0.236 Fibonacci level).
  • Key Support: $3,420 (current pivot).
  • Critical Support: $3,216 (0.5 Fibonacci retracement).
  • Short-Term Target for Wave (iii): Above $3,900 if bullish momentum sustains.
  • Invalidation Zone: Below $3,012, signaling further downside.
Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.
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