ETH price finds resistance at the yearly high sending it to moving sideways. Correction likely to develop further.
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Key Takeaways
ETH faces resistance at $4,075; a pullback may follow.
Key support lies between $3,669 and $3,215 Fibonacci levels.
Momentum weakens with RSI, indicating correction risk.
Ethereum recently rallied to $4,075 after breaking out of a descending triangle near $2,350. However, a rising wedge pattern has emerged, signaling a potential pullback as momentum weakens. Sideways movement, with signs of struggle, indicates further consolidation before a decisive move.
The ETH 4-hour chart shows a strong upward trend after completing Wave (4), nearly $2,350. The breakout from a descending triangle led to a significant rally, reaching resistance near $4,075 on Dec. 6.. A rising wedge pattern has formed, suggesting the possibility of a pullback or trend reversal soon.
ETHUSD resistance encountered at yearly high | Credit: Nikola Lazic/TradingView
Fibonacci retracement levels are plotted, with the 0.236 retracements at $3,669 as immediate support.
A breakdown below this level could push the price toward the 0.5 ($3,215) or 0.618 ($3,012) support levels. The Relative Strength Index (RSI) remains elevated near overbought territory, signaling potential weakness in momentum.
To maintain the bullish trend, ETH must sustain above the wedge support and clear $4,075. A failure to hold support could trigger a corrective wave targeting the lower Fib levels. The broader structure remains bullish unless the price breaks below $3,500 support.
Key Observations
ETH broke out from a descending triangle and rallied to $4,075.
Rising wedge pattern indicates a risk of a corrective pullback.
RSI near overbought suggests a potential momentum slowdown.
ETH Price Prediction
The ETH 1-hour chart shows a completed 5-wave Elliott Wave structure, peaking at $4,075. A potential ABC correction is unfolding, with the price currently retracing from the B wave. The first major support is near $3,669 (0.236 Fib retracement), with further downsides possibly occurring.
ETHUSD developing sideways correction | Credit: Nikola Lazic/TradingView
If the price breaks below $3,669, the next levels to watch are the 0.382 ($3,418) and 0.5 ($3,215) Fibonacci retracements. The correction’s C wave could target the 0.618 level ($3,012). The RSI shows a slight downward trend, indicating weakening momentum and increasing correction risk.
For bullish continuation, ETH needs to reclaim the $4,075 resistance. Failure to hold above the key Fib supports, especially $3,418, could confirm the corrective phase and push the price toward the $3,012 support zone or lower.
Key Levels to Watch
Immediate resistance: $4,075 (recent high).
Key support: $3,669 (0.236 Fib retracement).
Lower support levels: $3,418 (0.382 Fib), $3,215 (0.5 Fib), and $3,012 (0.618 Fib).
Upside confirmation requires a breakout above $4,075 for bullish continuation.
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.
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.
