Ethereum is forming correction for a continuation to the upside, expecting target to reach at $6600
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Chart Analysis:1. Timeframe and Price Context
Timeframe: 4-hour chart (each candlestick represents 4 hours of trading).
Price Levels:
Ethereum’s price at the time of the chart (March 10, 2025) is $2,161.65, with a slight increase of 0.27%.
The price range on the chart spans from around $1,500 (early 2024) to a peak near $4,000 (late 2024), followed by a decline to the current level.
Trend Overview:
Early 2024: Ethereum starts around $1,500 and enters a strong uptrend, peaking near $4,000 by late 2024.
Late 2024 to March 2025: The price corrects downward, forming a descending triangle pattern (more on this below).
2. Key Patterns and Annotations
Descending Triangle:
The chart shows a descending triangle pattern, which is typically a bearish continuation pattern but can also act as a reversal pattern in certain contexts.
Upper Resistance: A horizontal resistance line around $4,000 (where the price peaked and failed to break through multiple times).
Lower Support: A descending trendline (sloping downward) that the price has been testing, with the most recent touch near the $2,000 level.
The price is currently near the apex of the triangle, which often signals an impending breakout (either upward or downward).
Correction Phase:
The chart labels a "Correction" phase, where Ethereum’s price dropped from its $4,000 peak to the $2,000-$2,200 range. This correction aligns with the descending triangle’s formation.
Corrections are common after strong uptrends, as markets consolidate and shake out weaker hands before the next move.
Accumulation Zone:
The chart marks an "Accumulation Zone" near the $2,000-$2,200 range. This suggests that large players (whales) might be buying at these lower levels, as you mentioned in your previous message.
This zone coincides with the lower support of the descending triangle, indicating a potential area of strong buying interest.
Breakout Prediction:
An upward arrow is drawn, suggesting a potential breakout to the upside, targeting the $4,000 resistance level again. This aligns with your earlier statement about a "big movement to the upside."
3. Support and Resistance Levels
Support:
The $2,000 level has acted as a strong support, as seen during the correction phase. This level also aligns with the accumulation zone.
If this support breaks, the next significant level could be around $1,800 (a prior support from mid-2024).
Resistance:
The $4,000 level is a major resistance, as Ethereum failed to sustain above it previously.
Intermediate resistance might be around $3,000, a psychological level and a prior area of consolidation.
4. Volume and Momentum (Not Visible but Inferred)
Since volume bars aren’t clearly visible, I’ll infer based on typical behavior:
During the correction, volume likely decreased as selling pressure waned.
For a breakout to be confirmed, you’d want to see a spike in volume as the price breaks above the descending trendline of the triangle.
Momentum indicators (like RSI or MACD, if available) could help confirm whether the price is oversold at the current level, supporting a potential reversal.
5. Potential Scenarios
Bullish Breakout:
If Ethereum breaks above the descending trendline (around $2,300-$2,400) with strong volume, it could confirm the breakout.
The target would be the $4,000 resistance, as indicated by the chart. This would represent an ~85% move from the current price of $2,161.65.
This scenario aligns with your view of whales accumulating and a big upward movement.
Bearish Breakdown:
If the price fails to break the descending trendline and instead drops below the $2,000 support, it could signal a bearish breakdown.
The next support level would be around $1,800, potentially leading to further panic selling.
Consolidation:
If the price remains within the triangle (between $2,000 and the descending trendline), it might continue to consolidate until a clearer catalyst emerges.
6. Market Context
Whale Activity: Your earlier statement about whales accumulating during panic aligns with the accumulation zone on the chart. This could indicate that large players are positioning for a breakout.
Market Sentiment: The correction and panic you mentioned might be driven by broader market factors (e.g., macroeconomic conditions, regulatory news, or Bitcoin’s performance). Ethereum often follows Bitcoin’s lead, so a bullish move in BTC could support ETH’s breakout.
Timing: The chart is at the apex of the triangle, suggesting a breakout could happen soon (within days to weeks on a 4-hour timeframe).
Note
Accumulation zone Note
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.