Is Ethereum (ETH) Ready to Move Above $3,000? This Pattern Points to Yes!
The Ethereum (ETH) price reached a high of $1,865 today, validating a 190-day descending resistance trendline.
The high is a culmination of a nearly 20% increase during the past seven days. Will ETH break out from the trendline?
Ethereum Makes Breakout Attempt Above 190-Day Resistance
The daily time frame chart shows that the Ethereum price has decreased alongside a descending resistance trendline since its yearly high of $2,141 in April.
After falling to a low of $1,521 on October 12, ETH began an upward movement that is still ongoing.
The price reached a high of $1,865 today, reaching the trendline that has now been in place for 193 days. This is the third attempt at breaking out (red icons).
The daily Relative Strength Index (RSI) supports the continuing of the increase.
The RSI is a momentum indicator traders use to evaluate whether a market is overbought or oversold and whether to accumulate or sell an asset.
Crypto investing, simplified. Get Ethereum (ETH) price predictions here.
Readings above 50 and an upward trend suggest that bulls still have an advantage, while readings below 50 indicate the opposite.
The RSI is increasing and above 50, both considered signs of a bullish trend. While the indicator is overbought, it has not generated any bearish divergence that could lead to a drop.
ETH/USDT Daily Chart. Source: TradingViewThere have been some positive Ethereum news this week.
The Ethereum layer-2 protocol Scroll has launched to the mainnet. The scaling solution offers Ethereum compatibility with Ethereum Virtual Machine (EVM) contracts powered by zero-knowledge proofs.
Nocturne, a privacy protocol for the Ethereum blockchain, announced its $6 million seed round, in which Vitalik Buterin participated. Nocturne Labs will launch its protocol on the mainnet this November.
Frog Nation CFO 0xSifu is facing a potential liquidation if the ETH price increases. X users are calling for a rally to $1,970 to trigger the liquidation.
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ETH Price Prediction: Can Price Move Above $3,000?
Technical analysts employ the Elliott Wave theory as a means to identify recurring long-term price patterns and investor psychology, which helps them determine the direction of a trend.
The weekly timeframe count is extremely bullish. The count suggests that ETH is in wave three of a long-term five-wave upward movement (black) that began in June 2022. The sub-wave count is given in white, also showing that ETH is in sub-wave three.
Since wave three is the most likely to extend, the increase can accelerate quickly if the count is correct.
Cryptocurrency trader Bluntz_Capital believes that the short-term count is similarly bullish, accelerating the increase.
In the weekly timeframe, the main resistance area is at $1,950. If ETH breaks out above it, it can increase by 90% to the next resistance at $3,400.
ETH/USDT Weekly Chart. Source: TradingViewDespite this bullish ETH price prediction, a decrease below the sub-wave two low of $1,521 will invalidate the count. In that case, the ETH price could fall 30% to the closest support at $1,200.
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