Ethereum Market Overview

This analysis builds upon the previous technical outlook, identifying three key patterns on Ethereum’s daily timeframe:

1. Ascending Channel
Ethereum has been trading within a well-established ascending channel since 2018. Each time a new all-time high (ATH) is reached, price consistently tests the channel’s resistance, while the major support level was formed on March 23, 2020, creating a strong demand zone that remains intact.

Currently, ETH has reached the lower boundary of this channel at $2,128, a key support level. If a bullish reversal occurs, the next upside target aligns with the ascending channel resistance at $8,463.

2. Symmetrical Triangle
A symmetrical triangle pattern has been forming since March 23, 2020, with its support level coinciding with the lower boundary of the ascending channel. A confirmed breakout above $3,600 would validate this pattern, triggering a bullish AB=CD extension, with a price projection towards $8,463.

3. Fibonacci Retracement
Currently, ETH is testing the 0.618 Fibonacci retracement level, a critical zone for potential trend reversals. If this level holds against bearish pressure, the next bullish projection aligns with the 1.618 Fibonacci extension at $5,319.

Breakdown Risk & Buyback Strategy
If the current support level fails, ETH could see a maximum downside correction of -26%, targeting $1,600. This level presents a high-probability buyback opportunity, offering a potential +437% upside, should Ethereum rally towards its extended price projection at $8,463.

This analysis underscores the importance of risk management and technical confirmation signals before executing any trades.