Ethereum (ETH) Maintains Uptrend Amid Sideways Weekend Trading Activity

Key Takeaways

• ETH’s breakout from the symmetrical triangle signals strong bullish momentum.
• Immediate resistance is $3,519, with $3,800 aligning as a wave (v) target.
• RSI indicates further bullish potential before a major correction.

Ethereum Price Analysis 

The daily chart shows a strong recovery phase, marking the completion of a wave (iv) correction and initiating an impulsive wave (v) from Nov. 20.

ETH successfully broke above key resistance at $3,000, revisiting its prior high. The current price is $3,406.

This breakout is supported by robust buying momentum and aligns with the overall bullish Elliott wave structure. 

Over the weekend, we saw it consolidating sideways around its Nov. 12 high, but further advancement is expected as it develops its final wave. 

The Relative Strength Index (RSI) remains elevated but not overbought, signaling that ETH has room for further upside before encountering a potential retracement.

The rising structure and the breakout from the symmetrical triangle indicate strong bullish sentiment, suggesting ETH could reach $3,800 in the coming wave (v) before a larger correction unfolds.

Key Observations:

1. Symmetrical Triangle Breakout: ETH broke out from a symmetrical triangle, confirming bullish momentum and the start of wave (v).
2. Horizontal resistance: $3,519 is the immediate resistance, while $3,800 aligns with the wave (v) target.
3. RSI Momentum: While elevated, RSI indicates room for further upside, supporting the continuation of the bullish trend.

The ability of ETH to sustain above the $3,000 level will be crucial in maintaining bullish momentum, as this would reinforce the ongoing wave structure. However, a break below $3,000 could invalidate the bullish scenario and lead to a retest of lower support at $2,516.

ETH Price Prediction

The ETH 1-hour chart indicates a well-defined impulsive Elliott wave structure. After completing lower-degree wave (iii) at $3,519, ETH entered a wave (iv) correction that appears to form a classic ABC pattern.

The price recently bounced from the support level near $3,330, suggesting the potential end of wave (iv) and the start of wave (v).

The current price action remains bullish, supported by higher lows and a rising RSI, signaling potential continuation toward the next resistance zone at $3,650.

However, if the price breaks below the recent low at $3,330, a deeper retracement toward $3,200 could occur before the uptrend resumes.

Key Levels to Watch:

• Support Levels:
  • $3,330: Wave (iv) low and initial support.
  • $3,200: Next critical support if $3,330 fails.
  • $3,000: Psychological support and major horizontal zone.
• Resistance Levels:
  • $3,519: Current wave (iii) high and immediate resistance.
  • $3,650: Projected wave (v) target based on Fibonacci extensions.
  • $3,800: Extended wave (v) target and significant resistance level.

ETH’s ability to hold above $3,330 will maintain the bullish momentum and confirm the continuation of wave (v).

A decisive breakout above $3,519 would validate the next leg upward, potentially driving the price toward $3,650.

About the Author

Nikola Lazic

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. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.

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