Ethereum (ETH) Hits $3760 Target, Dips 4%: Uptrend Falters
Ethereum has been on an exciting journey lately, breaking out above $3,200 and solidifying its bullish structure. This is great news for investors who have been eagerly following its progress. The Relative Strength Index (RSI) is currently indicating that a wave (iv) correction might be on the horizon.
If we take a closer look at the daily chart, we can see that Ethereum has made a strong recovery from its low near $2,100. This indicates a clear and impulsive advance within a larger Elliott Wave structure. The recent rally has surpassed key resistance levels, reaching a high of $3,430 on November 12. This shows renewed bullish momentum, especially after breaking out from a descending triangle pattern.
Following this upward trend, Ethereum reached a high of $3,764 on December 1, which aligns with our projected target. The RSI is now in the overbought territory, signaling a potential correction phase before we see a potential uptrend resume.
Looking ahead, we may see a pullback as the price action hints at an ABC wave pattern forming. This could retrace to key Fibonacci levels for support. Today’s dip of 4% raises concerns, and combined with weakening momentum, it suggests the possibility of a short-term pullback.
It’s important to keep an eye on support and resistance levels in the coming days. Immediate support levels include $3,440, followed by $3,243, and $3,083. On the other hand, resistance levels to watch out for are $3,759, $4,000, and $4,400.
In conclusion, Ethereum’s recent breakout above $3,200 is a positive sign for the future. While a correction phase may be on the horizon, the overall bullish momentum is still intact. Investors should stay informed and keep a close watch on key levels to make informed decisions. Remember, all investments carry risks, so it’s always a good idea to consult a financial advisor before making any decisions.
