Ethereum at a Critical Crossroads: $4,300 Breakout or $1,400 Breakdown?

Ethereum (ETH) is trading near $2,900 after falling over 12% in the past week. Despite the pullback, the asset is holding above a key technical level. Traders are now watching to see if it can bounce from here and make a move toward $4,300.

ETH Holds Above Key Fibonacci Support

Crypto analyst StockTrader_Max shared that ETH is holding above its 0.618 Fibonacci retracement near $2,940.

Notably, the price area is seen as a potential turning point after a completed corrective move. The structure appears to follow a wave pattern where a corrective phase may have ended, and a new upward move could be forming.

Based on the 1.618 extension, a target near $4,300 is possible. This setup remains valid while ETH stays above $2,630. If it breaks that level, the outlook weakens. Below $1,390, the structure would be considered invalid.

Additionally, Don posted a chart showing ETH breaking out from a falling wedge on the 5-day chart. The pattern is known to show up before upward moves. While ETH lost some support on shorter timeframes like the daily and 3-day, longer timeframes are still holding up.

The 5-day and weekly moving averages are acting as a support base around $2,720. The target from this wedge pattern is around $4,400. Price action has slowed, but the setup has not broken down. “It’s just slow cooking for $ETH,” Don said, suggesting the move may take time to develop.

On the weekly chart, Man Of Bitcoin shared that the RSI has broken above a downward trendline. He explained that this type of break has, in past cycles, appeared before upward trends. ETH is now trading above some key support zones after a completed correction wave.

Mixed Signals as Large Buyers Accumulate

While some charts point to recovery, not all outlooks agree. Ali Martinez said,

Max Crypto also noted that ETH’s December return is now negative. If the month closes red, it would be the ninth red month this year — a pattern seen only once before, in 2018.

Still, large holders appear to be buying. BitMine Immersion Technologies added over 100,000 ETH, worth more than $300 million, in just one week. While small traders may be selling, larger buyers seem to be stepping in.

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