- Ethereum targets $7,000 – $8,000 after clearing the $4,500 resistance, driven by the Elliott Wave’s bullish structure.
- Fibonacci extensions and a triangle breakout signal a potential Ethereum surge toward $10,800 in the long term.
- Critical support near $3,180 reinforces bullish momentum, while $4,000-$4,500 remains a decisive resistance zone.
Ethereum ($ETH) dominates crypto signaling robust upward momentum. Analysts expect it to surge after breaking key resistance zones. If Ethereum makes a clear move above $4,000 – $4,500, it may reach $7,000 – $8,000. Ethereum’s potential for gains is demonstrated by its compatibility with Elliott Wave Theory.
Analyzing the Elliott Wave Pattern
As per Xforce Global, Elliott Wave Theory identifies five distinct price waves. Wave 1 initiated Ethereum’s breakout at nearly $1,800, with a strong upward trend. However, Wave 2 presented a minor pullback, staying above crucial support levels. The third wave marked a pronounced rally, pushing prices to $4,000 and breaking resistance.
Wave 4, however, introduced a consolidation phase. Despite downward movement, the price held within a channel, maintaining bullish momentum. The fifth wave emerged as the strongest, propelling Ethereum above $7,500. This phase ended with a correction near $6,000, signifying temporary consolidation. Analysts emphasize that the trend channel, marked by green support and red resistance, continues to reflect Ethereum’s bullish trajectory.
Fibonacci Levels and Future Price Targets
Besides the Elliott Wave framework, Fibonacci extensions further validate Ethereum’s bullish outlook. The 100% and 161.8% levels align with potential corrective endpoints. These measurements suggest Ethereum could achieve new highs if current patterns persist.
Moreover, a secondary analysis reveals Ethereum forming a triangle structure, indicative of a price breakout. Wave E’s early termination reinforces bullish sentiment, signaling a trend reversal. Analysts project a potential target of $10,800, supported by Fibonacci extensions and long-term trendlines.
Current Outlook and Key Levels to Watch
According to analyst Charting Guy Ethereum is on an upward channel testing critical zones. Currently, prices hover around $3,180, reflecting ongoing corrective phases. Key resistance near $4,000-$4,500 remains pivotal. Breaking this level could confirm a bullish continuation, propelling Ethereum to its projected highs.
However, invalidation zones, including the “Triangle Invalidation” level, warrant caution. A breakdown below these points could negate the bullish scenario. Nevertheless, analysts remain optimistic, citing consistent support along key trendlines and strong macro fundamentals.
Read the full article here
