Ethereum is approaching the $3,900 resistance, forming a bullish pattern on the charts. This event has caught the attention of traders and analysts.
Bullish Ethereum Pattern
On the weekly chart, Ethereum is forming a descending broadening wedge, drawing comparisons to the pattern preceding the 2020 rally. This pattern is being observed by traders and discussed on social media. Currently, the asset is priced at $3,859.96, with a 1.19% gain in the past 24 hours and a 6.74% increase over the past week.
Key Fibonacci Levels
Technical analysis suggests that Ethereum may dip to $3,050 before a breakout, aligning with the 0.382 Fibonacci retracement zone. This level has acted as significant support in prior macro cycles, offering a potential retest zone before trend continuation. The expected breakout level is around $7,800, based on the 1.272 Fibonacci extension.
Momentum Indicators Support Breakout Setup
Momentum indicators like the Relative Strength Index (RSI) and Stochastic RSI are both in an upward trend. RSI has recaptured the 50-line, indicating increased buyer control, while Stochastic RSI is beginning to enter the overbought territory. Analysts urge traders to monitor volume and structure integrity until breakout confirmation.
Ethereum's current technical setup points towards a possible breakout in the coming weeks, supported by historical comparisons and positive momentum indicators.
