Presently, Ethereum finds itself entrenched within a trading range bordered by $1690 and $2033. However, the spotlight falls on a critical resistance zone, firmly established between $2000 and $2100. This pivotal level has wielded considerable influence in the past, evidenced by three notable price dips in August 2022, and again in both April and July 2023. As the most recent swing high, breaching this level could set off a chain reaction, triggering an influx of sentimental buying pressure that may significantly impact Ethereum’s short-term trajectory.
Zooming in further, a closer analysis unveils Ethereum’s intraday movements, where it has been confined within a narrower consolidation range of $1840 to $1920 since the beginning of July. This compacted trading range serves as a microcosm of Ethereum’s price action, encapsulating its near-term market sentiment and highlighting the potential for a breakout or reversal from this confined zone.
Delving into the intricacies of Ethereum’s chart patterns, we witness the emergence of a distinct and formidable pattern, vividly illustrated in the accompanying chart. The lower trendline emerges as a stalwart support level, fortifying Ethereum against downward pressures and infusing the market with a sense of resilience. In contrast, the upper trendline looms large as a formidable resistance, challenging the cryptocurrency’s ascent and requiring a substantial push to overcome. Given this well-defined pattern, a logical expectation is that Ethereum may find temporary reprieve upon touching the lower support line before decisively charting its future trend direction.
The broader view reveals a compelling narrative of Ethereum’s exceptional bullish momentum since the onset of 2023. Evident through the formation of Lower-Highs and Higher-Highs, this trend epitomizes Ethereum’s super bullish structure, infusing the market with optimism and potential. Nevertheless, the pivotal element underpinning this optimistic outlook is Ethereum’s ability to safeguard its support at the $1600 level, a critical juncture that has garnered immense significance within the cryptocurrency community. Successfully preserving this support level will not only solidify the current bullish sentiment but may also serve as a catalyst for further upside potential.
Drawing from the rich insights of Elliott Wave theory, Ethereum’s current structure aligns remarkably with the Lower-High and Higher-High pattern. The intricate interplay of Elliott Wave A-E structure unfolds with meticulous precision, paving the way for an intriguing scenario ahead. As we presently find ourselves positioned at the point B of the 5th wave, the anticipation mounts for Ethereum’s ensuing move – an exhilarating prospect that could propel the cryptocurrency beyond the $2100 mark. Such a triumphant surge would signal the breaking of a year-long resistance, paralleling the historical significance of BTC’s momentous breach of the $25000 resistance. However, this bullish eventuality hinges upon Ethereum’s unwavering adherence to its support at $1600, underscoring the critical importance of maintaining stability in the face of market fluctuations.
Further scrutinizing the Elliott wave 1-5 structure, we uncover the remarkable consistency with the Elliott Wave A-E pattern. Each wave dutifully follows the prescribed pattern, bolstering the credibility of our analysis. As the present juncture resides at the point B of the 5th wave, it beckons Ethereum to define its course – a decisive moment that may culminate in a momentous move from this juncture or a brief touch of the lower trendline before embarking on the ascent to complete the 5th wave.
Within this dynamic landscape, Ethereum Dominance takes center stage on the weekly timeframe, captivating our attention with its ongoing struggle to conquer the previous resistance. In a striking parallel to historical events that transpired in February 2020, this current breakthrough may serve as a harbinger of a momentous mega bullish trend for Ethereum.
Based on the various technical analyses (TAs) of Ethereum mentioned above, it is anticipated that Ethereum may decline and test the lower trendline around $1770 and $1780. At this juncture, Ethereum will face a critical decision on its next course of action. Should the price start moving upwards, it will encounter resistance in the range of $1920 to $1940. A bullish scenario would involve breaking above the upper trendline with significant trading volume, leading to potential targets at $2030, $2150, and $2310.
Conversely, if the price breaches the lower trendline, it becomes vital for Ethereum to remain above the $1600 level, which served as a recent swing low. This maintenance is necessary to sustain the Higher-Low and Higher-High pattern. Should Ethereum drop below $1600, the subsequent support levels lie within the range of $1470 and $1500.
Considering that the market is heavily influenced by BTC movements, a positive upswing in BTC could increase the likelihood of Ethereum’s upward movement. Conversely, a downtrend in BTC may elevate the risk of Ethereum breaking its lower support line. We are expecting Ethereum to perform its move in next 2 months
