|

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

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment. 

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest 

Bitcoin holds above support at $65,118 at the time of writing on Friday. Ethereum remains choppy in a narrow range between support at $1,900 and resistance at $2,000, while Ripple attempts another upward move toward the pivotal $1.40 level.

PancakeSwap Price Analysis: Bearish momentum suggests further downside

PancakeSwap (CAKE) is trading below $1.26 at the time of writing on Friday, extending the losses by over 8% so far this week. The weakening derivatives market further supports the bearish outlook, with bears aiming for levels below $1.18.

Decred Price Forecast: DCR rebounds toward key resistance zone on volume spike

Decred (DCR) rebounds over 7% at press time on Friday after a three-day decline of almost 14%. Roughly 60% increase in trading volume over the last 24 hours supports the recovery, suggesting heightened spot-market demand. 

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: BTC bears aren’t done yet

Bitcoin (BTC) price slips below $67,000 at the time of writing on Friday, remaining under pressure and extending losses of nearly 5% so far this week.