The Ethereum (ETH) market is currently focusing intently on the crucial $3,500 support level. Holding this level, with ETH trading around $3,553.87, is widely viewed as essential for confirming a bullish trend continuation towards significantly higher targets.
Technical analysis based on Elliott Wave theory suggests Ethereum is presently in Wave 2 of a five-wave impulse pattern. Market observers anticipate that a successful hold above $3,500 could set the stage for the commencement of Wave 3, historically the strongest phase in such patterns. This wave holds the potential to propel ETH prices aggressively beyond the $4,800 mark.
Key resistance for Ethereum is identified within the $3,800 to $4,000 range. Overcoming this resistance is considered vital for validating the projected bullish momentum. On the downside, failure to maintain the $3,500 support opens the possibility of a pullback towards the $3,200 level, with deeper support potentially found between $2,800 and $2,600.
Drawing parallels to historical cycles, the current wave structure echoes patterns seen during the 2023 bull market, where Wave 3 delivered substantial price appreciation. Consequently, the market sentiment hinges significantly on ETH’s ability to defend the $3,500 zone to unlock this anticipated strong rally.