Ethereum Nears Key Levels, Will $3,692 Break Spark a Bullish Rally?

• Ethereum’s Elliott Wave analysis signals a bullish outlook, with $3,692 as key resistance and $3,338 as critical support.
• Wave (5) targets Fibonacci extensions near $3,938, contingent on ETH holding its long-term ascending trendline.
• A break above $3,692 could propel Ethereum higher, while a dip below $3,338 may test key retracement levels at $2,815 and $2,639.

Ethereum currently trades below $3,692, signaling a critical juncture for potential upward momentum. According to analyst MoreCryptoOnline’s analysis, the price structure aligns with the Elliott Wave theory. Notably, ETH’s price continues its impulsive and corrective cycles. Analyst projections suggest ETH could extend higher if pullbacks remain limited to three-wave structures. A break below $3,338 may indicate the beginning of Wave (iv).

$ETH: The price is currently holding below the $3,692 level, which was my next ideal target for wave iii. I cannot rule out further upside extensions as long as pullbacks remain corrective. The price has only shown a 3-wave pullback so far, which leaves the door open for another… pic.twitter.com/PlEKbfb2sX

— More Crypto Online (@Morecryptoonl) November 29, 2024

Wave Analysis Highlights Critical Targets

ETH has followed a structured Elliott Wave pattern, starting with a strong uptrend in Wave (1) and a corrective Wave (2). Wave (3), characterized by smaller sub-waves, has pushed ETH to Fibonacci levels, including 161.8% at $3,511 and 178.6% at $3,692. These levels serve as potential resistance zones and bullish targets.

The corrective Wave (4) is retracing lower, testing crucial Fibonacci retracement levels. Notably, $3,338 acts as a key support zone within this phase. Other levels, such as 50% at $2,815 and 61.8% at $2,639, indicate potential pullback areas. Significantly, these levels align with ETH’s long-term ascending trendline, reinforcing bullish momentum.

Wave (5) Eyes Higher Fibonacci Extensions

The emerging Wave (5) reflects the upward movement from Wave (4), aiming to surpass prior highs. Fibonacci extensions suggest potential targets at 200% or $3,938. This wave features smaller sub-waves, indicating steady bullish progress. Additionally, the ascending trendline continues supporting ETH’s bullish structure, strengthening the outlook.

Moreover, ETH’s ability to sustain critical support levels remains vital for reaching higher price zones. A decisive break above $3,692 could propel the price further toward $3,938 and beyond. Conversely, a break below $3,338 may challenge the bullish narrative.

Outlook and Implications

Ethereum’s current Elliott Wave progression highlights both risks and opportunities for traders. Key Fibonacci levels provide actionable insights for potential reversals or targets. Besides, respecting the ascending trendline ensures ETH’s bullish structure remains intact.

MoreCryptoOnline’s analysis underscores ETH’s potential for further upward extensions, contingent on maintaining crucial support zones. Market participants should watch for reactions around $3,692 and $3,338, signaling the next phase in Ethereum’s price journey.

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