Ethereum (ETH) Price Jumps 12% in a Day — Break Above $2,900 Could Escalate Rally

Key Takeaways

• Ethereum’s (ETH) price attempts to create a bullish, engulfing candlestick.
• The ETH price broke out from a short-term ascending triangle pattern.
• Has Ethereum finally started the upward movement that will lead to new highs?

Ethereum’s price increased by 12% on Nov. 6, the same day that Bitcoin (BTC) reached a new all-time high. While Ethereum is still far from its all-time high, the surge on Nov. 6 is a positive sign, especially since ETH outperformed BTC, which increased by 9%.

Today, the ETH price trades inside a key critical horizontal resistance area. Can ETH break out from this resistance and further accelerate its rate of increase? Let’s find out.

ETH Price Bounces at Support

The weekly time frame ETH chart shows that the price bounced at an 875-day ascending support trend line this week. So far, it has reached this trend line six times (white icons).

On top of the diagonal support trend line, the price of ETH also bounced at the $2,450 horizontal area, which has acted as both support and resistance for the past three years.

If the current price holds, ETH will create a bullish, engulfing candlestick this week.

Despite the bounce, technical indicators have not yet confirmed the bullish trend reversal. This is because the Relative Strength Index (RSI) has not moved above 50 and the Moving Average Convergence/Divergence (MACD) has not made a bullish cross yet (black circles).

If the indicators cross these thresholds, they will confirm that a bullish trend reversal has begun.

Ethereum Breaks Out

The daily time frame corroborates the findings from the weekly one. It shows the ETH price broke out from a short-term ascending triangle pattern and a longer-term descending resistance trend line.

There is a lot of confluence for a high at $3,350. The target is given by projecting the triangle’s height to the breakout level and coincides with the 0.618 Fibonacci retracement resistance level and a horizontal resistance area.

Unlike the weekly one, daily time frame technical indicators are bullish. The RSI and MACD are above their bullish thresholds at 50 and 0, respectively. So, the daily chart suggests that Ethereum will break out above $2,900 and reach the next resistance at $3,350.

What’s Next for Ethereum?

The daily time frame wave count predicts that Ethereum will begin the most rapid portion of its upward movement soon.

According to the count, the ETH price is in sub-wave three (black) of wave three (white), which is the sharpest of the bullish waves.

The 2.61 extension of wave one creates a likely target for the top of wave three at $4,031. Then, wave five could end between $4,763 and $5,084.

The 3.61 extension of wave one creates the lower limit of the target, while the 1.61 external Fibonacci retracement creates the upper limit (black).

While the first would not be a new all-time high, the second would. Both would be new Ethereum yearly highs.

New Ethereum Yearly High

The price action, indicator readings, and wave count from multiple time frames suggest that ETH has started its much-awaited long-term increase.

A breakout above $2,900 will confirm this and likely accelerate the pace of the ETH movement.

A likely target for a local top will be between $4,763 and $5,084.

About the Author

Valdrin Tahiri

Valdrin discovered cryptocurrencies while getting his MSc in Financial Markets from the Barcelona School of Economics in 2017. He has been an avid investor and trader since. Valdrin has written for several cryptocurrency media companies such as BeInCrypto and CoinGape.

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