Ethereum (ETH) Breakout Likely as Price Nears Critical Levels
ETH recovered only 2.5% but considering it was in a downtrend from March, a bullish phase is just around the corner.
Key Takeaways
- Ethereum dropped 48% since its March 2024 high of $4,100.
- Indicators suggest the end of Ethereum’s corrective phase.
- A move above $3,000 could confirm Ethereum’s new uptrend.
The price of Ethereum (ETH) has been in a downtrend since March 12, when it made its yearly high of $4,100. Measured to its lowest point since Sept. 6, of $2,151, it lost 47.5% of its value. Today, as the market recovers, it only gained 2.5%, but considering the amount of the decline and its longevity, it could be ready to start a new bullish phase.
Ethereum Price Analysis
Ethereum’s bull cycle started in June 2022 when the price dipped below $1,000 before rallying to $2,000 by August. It then made its first higher low of $1,180 in November, forming the initial two sub-waves of a larger five-wave pattern. The next uptrend took ETH to just over $4,000 by mid-March 2024, a remarkable 265% increase.
Following this peak, Ethereum entered a bearish phase, dropping 48% to its low of $2,150 on Sept. 6, potentially marking the end of its fourth corrective wave within the broader five-wave structure. The daily Relative Strength index (RSI) and MACD indicators suggest this low may have completed the correction, aligning with similar conditions in previous macro reversals.
If this analysis holds, Ethereum is entering its fifth and final wave, potentially revisiting its all-time high of $4,800 or exceeding it. The recent 26% recovery until Aug. 24 further supports this outlook, but confirmation will come if Ethereum continues its upward movement, with a target of around $3,000.
ETH Price Prediction
Zooming into the hourly chart, we can see that the price rose after resetting the $2,175 horizontal support zone. This is a positive sign, but the second is that we’ve seen a higher low on Sep. 16 compared to Sep. 6, which is the second.
If the rise continues, ETH could be on the path to developing its first five-wave pattern as a lower degree of uptrend from the higher degree wave 1. Its target is projected to be around $2,900 area, which would be slightly higher than in the Aug. 24 high
Failure to do so could mean that the ETH price is headed further below its horizontal support area of around $2,000.
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