Ethereum Approaches Major Breakout as Multi-Year Wedge Nears Resolution

Over the past several years, ETH has been grinding sideways within a massive, symmetrical wedge—classic A–B–C–D geometry at play. This week, price came up to kiss the wedge’s upper trendline, and our suite of momentum tools is flashing green for a sustained move higher.

1. Harmonic ABCD Unfolding

A → B → C → D: The structure remains pristine, with point D carving out a higher low in that $1,500–$1,600 zone. That level has proven to be solid demand, where buyers continually step in to absorb selling pressure.

2. Fibonacci Alignment

161.8% Extension (~$5,800): This first major upside objective dovetails neatly with long‑term resistance, making it our initial profit‑taking milestone.

261.8% Extension (~$7,000): The secondary target channels into the broader “Target” band—if momentum doesn’t falter, this is where the next material supply zone resides.

3. Volume Profile Dynamics

We’ve seen heavy accumulation between $1.5K–$2.5K, creating a dense base. Above $4K, there’s historically been very little volume—meaning a breakout through that level could see price sprinting upward with minimal friction.

4. Momentum Confluence (MACD / RSI)

Triple Bullish Divergence: Both RSI and the MACD histogram are printing higher lows, while price made lower lows—classic divergence that often precedes a powerful reversal.

MACD Histogram Break: The downtrend line on the histogram has already snapped, signaling growing bullish conviction.

5. Moving‑Average Cross

On the bi‑weekly chart, the 50 EMA is about to cross above the 100 EMA—a macro‑scale golden cross that has historically been a reliable tailwind in crypto up‑trends.

Bullish Playbook

1. Weekly Close > $4,000–$4,200: This is your confirmation zone. A solid close here validates the wedge breakout.

2. First Rally Leg to $4,600: A minor supply shelf from past highs—it could act as a short‑term pullback point.

3. Primary Target at $5,800: Aligns with Fib 161.8% and major overhead resistance.

4. Extended Run to $7,000+: If the wind stays at ETH’s back through Q3/Q4, that 261.8% Fib extension comes into view.

Bearish Contingency

Key Support at $3,500: If price fails to hold this level after the breakout, expect a swift revisit of $2,500, and potentially retesting the mid‑wedge floor near $2,000.

Systemic Risks: Keep an eye on macro catalysts—unexpected rate pivots or liquidity drains have a nasty habit of pulling the rug out from under crypto rallies.

Next Steps:
ETH is at a pivotal junction. A clean breach and weekly close above $4K could ignite the next bullish chapter—otherwise, chops and a retrace to the lower wedge boundary remain on the table. Stay nimble, watch those levels, and let momentum lead the way.

#ETH Hits 4800 #ETH