Ethereum Price Uptrend Forms — ETH Targets Key $2,730 Resistance

Key Takeaways

• Ethereum (ETH) trades inside an ascending parallel channel.
• The ETH price faces a confluence of resistance at $2,730.
• Will ETH finally start playing catch-up to the rest of the market?

The ETH price has struggled mightily in 2024 and is up only 13% year to date. This has lagged well behind Bitcoin, up nearly 70% and close to a new all-time high. Ethereum’s decline culminated on Aug. 5, when the price fell to a new yearly low of $2,131.

Even though Ethereum’s price trades relatively close to its yearly lows, it has generated some bullish signals that could finally lead to more upside. Let’s look at these signs and the critical resistance levels tETH needs to break to accelerate its increase.

Ethereum Saves Breakdown

The daily time frame Ethereum chart shows that the price has increased since Aug. 5, creating a higher low in September. The rally stalled after ETH reached a high of $2,728. Then, on Oct. 25, ETH was close to breaking down from its ascending parallel channel pattern.

However, ETH bounced and traded above the channel’s midline. The channel’s resistance trend line coincides with the $2,730 horizontal resistance area. So, a breakout above will confirm that ETH has started a bullish trend reversal.

The wave count is also bullish. The most likely count shows a 1-2/1-2 wave formation, meaning the rally will accelerate soon. If the count is accurate, the price of ETH is in sub-wave three (black) of wave three (white)

Finally, technical indicators provide a bullish outlook. The relative strength index (RSI) has increased above 50, and the moving average convergence/divergence (MACD) has risen above 0, making a bullish cross.

Ethereum Sentiment

Even though the Ethereum sentiment is extremely bearish, some contrarian opinions are popping up. Altbender believes  Ethereum is the most mispriced asset since it is 60% away from its highs, compared to 6% for Bitcoin. Since the tweet, BTC is less than 2% away from its high.

Crow used a long-term ascending parallel channel to predict that the bottom is in that the price of ETH will reach $5,000 this cycle.

Ethereum founder Vitalik Buterin has responded to criticism that the foundation needs to fix the current user experience by stating that Ethereum is focusing on building the future and posting a roadmap to Layer-2 improvements.

In one of his proposed ideas, the Surge , he suggests that Ethereum and its Layer-2s will reach 100,000 transactions per second.

Finally, CoinMamba believes that the negative sentiment surrounding it is only concerned with price action. He tweeted that once Ethereum clears $5,000, it will still be hailed as the future of finance.

New All-Time High?

The 3-day Ethereum chart supports the short-term breakout. While the long-term count is unclear, the price of Ethereum likely completed an A-B-C corrective structure (white) starting in February.

The sub-wave count is in black, showing a truncated five-wave decline. Truncation means wave five did not go below the bottom of wave three. It often leads to a violent movement in the other direction.

The ETH price currently trades above the channel’s midline. The resistance trend line is at $3,000. If Ethereum breaks out, it may finally accelerate the rate of increase. A possible target for the top of wave five is at $5,280, created by the 1.61 external Fibonacci retracement of the decline.

Technical indicators support this hypothesis. The RSI and MACD broke out from their resistance trend line (green) and are close to moving above their bullish thresholds at 50 and 0, respectively.

Falling below the long-term channel’s midline will risk this bullish Ethereum price prediction. This would also cause a breakdown from the short-term channel but currently seems unlikely.

Ethereum Could Catch Up

Even though Ethereum has underperformed considerably in the current cycle, the tables could turn quickly.

If Ethereum breaks out from its confluence of resistances at $2,730, it could accelerate its increase and quickly move to $3,000.

A possible target for the top of the current cycle is $5,280.