|

ETH/USD key support zone in uptrend of wave 4 pattern

Ethereum (ETH/USD) is showing significant wicks on both sides of the daily candlesticks. The struggle between bulls and bears is, however, above the 21 ema zone in a strong uptrend (all moving averages are aligned).

Price Charts and Technical Analysis

The ETH/USD remains in a well established uptrend. Price action recently completed an ABC (grey) pattern in wave 4 (pink). After that, price action broke above the 21 ema zone for another bullish swing up:

  1. So far, the bullish swing is not yet completed because the AO bars on the daily chart are still far above the middle line of the oscillator. Price action has bounced from the 38.2% Fib to the -27.2% Fibonacci target.
  2. This means that price action seems to be in an ongoing wave 5 (pink) for the moment.
  3. Also, when reviewing price action, bulls seem determined to defend the support zone (green box), the trend lines (green), and 21 ema zone.
  4. A break below the 21 ema zone indicates the end of the wave 5 (pink) but not the end of the uptrend. Simply because price action is expected to bounce at the lower support levels.
  5. Only a very deep retracement places the uptrend on hold (orange circle) or invalidates it (red circle).
  6. An immediate breakout higher (green arrows) could indicate a push towards the -61.8% Fibonacci target around $3,000. A bull flag pattern (grey arrows) could confirm a shallow pullback to the previous top.

On the 4 hour chart, the roller coaster push up and down seem to be part of an ABC (orange) pattern in wave 4 (grey). Price action is now testing the 21 emas, which is a key decision zone for a breakout or bounce:

  1. A bullish breakout above the 21 ema zone should confirm an uptrend continuation (green arrow). 
  2. The previous tops can create a bull flag (grey arrows) pattern. A break of that pattern indicates a full uptrend (green arrow).
  3. A minor pullback (orange arrow) to the support trend (green) could see a bounce (green arrow).
  4. A bearish breakout (dotted orange arrow) could indicate a deeper wave correction but the uptrend remains valid.

Author

Chris Svorcik

Chris Svorcik

Elite CurrenSea

Experience Chris Svorcik has co-founded Elite CurrenSea in 2014 together with Nenad Kerkez, aka Tarantula FX. Chris is a technical analyst, wave analyst, trader, writer, educator, webinar speaker, and seminar speaker of the financial markets.

More from Chris Svorcik
Share:

Editor's Picks

Aster Price Forecast: Demand sparks on Binance Wallet partnership for on-chain perpetuals

Aster is up roughly 9% so far on Thursday, hinting at the breakout of a crucial resistance level. Aster partners up with Binance wallet for the second season of the on-chain perpetuals challenge.

Crypto Today: Ethereum, XRP hold baseline support as Bitcoin struggles to find upside strength

Bitcoin hovers around $67,000, weighed down by risk-off sentiment as reflected by ETF outflows. Ethereum steadies toward the $2,000 psychological threshold despite fading institutional support.

Bitcoin Price Forecast: BTC stalls near $67,300 resistance as downside risks linger

Bitcoin (BTC) price is steadying at $67,000 on Thursday and faces resistance near the previously broken lower consolidation boundary at $67,300, signaling potential downside risk ahead.

LayerZero Price Forecast: ZRO steadies as markets digest Zero blockchain announcement

LayerZero (ZRO) trades above $2.00 at press time on Thursday, holding steady after a 17% rebound the previous day, which aligned with the public announcement of the Zero blockchain and Cathie Wood joining the advisory board.

Bitcoin Price Annual Forecast: BTC holds long-term bullish structure heading into 2026

Bitcoin (BTC) is wrapping up 2025 as one of its most eventful years, defined by unprecedented institutional participation, major regulatory developments, and extreme price volatility.

Bitcoin: The worst may be behind us

Bitcoin (BTC) price recovers slightly, trading at $65,000 at the time of writing on Friday, after reaching a low of $60,000 during the early Asian trading session. The Crypto King remained under pressure so far this week, posting three consecutive weeks of losses exceeding 30%.