Key Takeaways
Ethereum (ETH) has been moving through significant market phases, shifting between bullish and bearish cycles.
After a substantial correction, ETH shows signs of regaining momentum, potentially breaking out from a symmetrical triangle pattern. Let’s explore the key takeaways from this price analysis and what to expect next.
Ethereum’s bullish cycle began in June 2022, recovering from below $1,000 to $2,000 by August.
A higher low at $1,180 in November confirmed the start of a five-wave pattern, which drove ETH to a peak of just over $4,000 by mid-March 2024—marking a 265% gain.
Following this peak, ETH entered a bearish phase, dropping 48% to $2,150 by Sept. 6, likely completing the fourth corrective wave of the broader five-wave structure.
However, the daily Relative Strength Index (RSI) suggests this low may have concluded the correction, hinting at the start of the fifth and final wave, which could push ETH back to or beyond its all-time high of $4,800.
Since Aug. 5, ETH has consolidated near a key horizontal zone, forming a symmetrical triangle—typically a bullish pattern—indicating that a rally could follow. Over the weekend, ETH increased by 6% and exceeded $2,500, but it is still in a symmetrical triangle.
Will it make a breakout and confirm a starting uptrend?
On the hourly chart, ETH rebounded from the ascending $2,327 support, forming a higher low on Oct. 10 compared to Oct. 3, indicating a strengthening trend. In addition, today’s high is slightly higher.
Currently trading around $2,500, ETH is gaining momentum.
We can expect more upside if it breaks through the descending resistance at $2,620.
The wave structure suggests the triangle could be an ABCDE correction, priming ETH for a breakout.
But today’s rise could still be stopped at descending resistance again with one higher low before the completion of this corrective pattern.
On the other hand, we could see an immediate breakout, signaling a new upward advancement and a new bullish phase
The first target for this rally is set at $3,500.
Finally, if ETH maintains upward momentum, this could represent only the initial sub-wave of a sustained bull phase, potentially driving the price to a new all-time high.