Ethereum shows a strong upward trend, surpassing the $4,200 mark. Let's examine the current market situation and potential forecasts.
Analysis of Current Ethereum Surge
The recent rise of Ethereum to $4,200 may indicate the beginning of the third wave of its price cycle according to Elliott Wave theory. This could become the most aggressive and extended phase, creating premises for a rise towards $5,600.
Key Support and Resistance Levels
The current resistance level stands at $4,300-$4,350. If Ethereum can overcome this mark, it is likely to reach the $4,600-$4,800 level. Key support is at $4,000; a successful retest and defense here would boost bullish confidence. Losing the support level at $3,650 could lead to a deeper pullback towards the 50-day EMA close to $3,190.
Future Growth Prospects
If the momentum is maintained, the forecasted level of $5,600 remains conceivable. However, it’s important for investors to note that wave rallies often attract late entrants, potentially leading to brief but severe corrections before the market continues upward.
Ethereum demonstrates strong growth signals, with the possibility of reaching new heights, but investors should remain vigilant regarding key support and resistance levels to avoid potential risks.
