Ethereum Enters Elliott Wave 5, Will it Break Through the Daunting $2,395 Resistance?

▲ Ethereum (ETH)/ChatGPT generated image ©

Ethereum (ETH), having broken through a long past bearish market and entered the 5th wave, the final major uptrend of the Elliott Wave, is building strong upward momentum and attracting market attention.

According to FXStreet, an investment media outlet, on April 15 (local time), Dr. Arnout ter Schure of Intelligent Investing diagnosed that Ethereum's Elliott Wave pattern is unfolding in line with long-term expectations. According to his analysis, the massive 4th wave concluded earlier this year, and there are clear signs that the 5th wave, a full-fledged bull market, is currently underway.

Even from a short-term perspective, positive trends are being observed. Since the February low, a leading expanding diagonal pattern, a very rare but strong bullish signal in the Elliott Wave structure, is forming as the first wave. In addition, Ethereum has easily broken through its 20-day, 50-day, and 100-day simple moving averages, laying a solid foundation for price recovery.

In particular, the breakthrough of the tedious downtrend line that had suppressed the upward momentum since last October is strong evidence supporting the entry into a bull market. The final resistance line now faced by the bullish forces is the upper boundary of the Ichimoku Cloud located at $2,395. If this level is successfully surpassed, the next upside target will be raised to $2,626, which is the 200% extension.

The 200-day simple moving average, currently at $2,910, is also falling by approximately $10 each day, which is expected to act as a major variable in the future. If this trend continues, there is a high possibility that the 200-day SMA will drop to around the initial target price of $2,626 within a month, forming a technical confluence and creating additional price upward momentum.

However, even amidst the rosy outlook, there are critical defense lines that must be held. If the price falls back below the broken downtrend line, it would mean that the bullish breakout has been invalidated. Especially, if the March 29 low of $1,938, which serves as the final warning line, is breached, the accumulated bullish potential should be considered a complete failure.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*