Ethereum (ETH) broke out from a descending resistance trend line.
The ETH price is in the fifth and final wave of its upward movement.
How much momentum does Ethereum have left in its upward movement?
Ethereum has bounced after retesting its previous all-time high region, and the price action suggests new highs are likely.
Ethereum reached a new all-time high of $4,955 on Oct. 3, and its analysis suggests the upward movement will continue despite the temporary dip.
Let’s examine the charts and find an appropriate level for the top of the upward movement.
Ethereum Falls After ATH
Ethereum’s weekly time frame analysis indicates that the price formed a bullish engulfing candlestick last week, following a bounce at the 3,900 horizontal support area.
Ethereum prevented its decline with a strong bounce, creating a long lower week and resuming its ascent last week and this week.
The area has exhibited resistance since the middle of 2021, except for the then-all-time high (black circle), which was merely a deviation.
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Momentum indicators are decisively bullish. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are increasing, and neither has generated a bearish divergence.
As a result, Ethereum’s long-term prediction remains bullish as long as the price trades above the $3,950 horizontal support area.
Why is Ethereum Going up?
Ethereum’s wave count supports the bullish prediction from the weekly time frame.
Then, Ethereum broke out from a diagonal resistance trendline that had existed for nearly two months. Ethereum accelerated its rate of increase, confirming that wave five is underway.
The RSI and MACD broke out from their resistances, confirming that new highs are likely.
The first target for the top of wave five is at $5,652, created by the 1.61 external Fibonacci retracement of the most recent decline.
Ethereum vs Bitcoin
The Ethereum to Bitcoin chart completely mirrors the USD one, confirming that the ETH price is in the fifth and final wave of its upward movement.
Ethereum initiated wave five on September 25, but has yet to break out from its diagonal resistance, which would confirm that wave five is underway.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
