ETHEREUM ANALYSIS
ETH/USDT Weekly Chart Breakdown
1. Overview of the Chart
The chart is a weekly timeframe for ETH/USDT on Binance.
Various technical indicators and tools are used, including:
Elliott Wave Analysis (Labelled waves 1 to 5, and corrective waves a, b, c).
Support and Resistance Zones.
Fibonacci Levels & Supply/Demand Zones.
Trendlines & Chart Patterns (e.g., Rising Wedge).
Stochastic RSI and Momentum Indicators.
Buy and Sell Signals based on multiple confluences.
2. Key Levels & Market Structure
Support Zones (Buying Areas)
Discount Zone (~$500 - $1200): The blue shaded area represents a significant support region.
Strong Low (~$86 - $121): Marked as a potential extreme bearish target, but unlikely unless a black swan event occurs.
Equilibrium Zone (~$2000 - $2500): A fair value level where ETH could stabilize before resuming upward.
Resistance Zones (Selling Areas)
Premium Supply (~$4500 - $5200): Marked as a major selling area.
Rising Wedge Breakdown (~$3500 - $4000): ETH has already broken down from this structure.
Previous High (~$4800): Strong resistance, as price previously failed to hold.
3. Market Trend & Patterns
Elliott Wave Perspective: ETH completed a 5-wave impulsive cycle, followed by a corrective (A)-(B)-(C) pattern.
Rising Wedge Breakdown: Suggests a bearish continuation unless ETH finds strong demand at key support.
Bearish Divergence in RSI: Indicates weakness in the trend.
Fibonacci Discount Zone: ETH could retrace towards $1200 - $1500, aligning with previous cycle lows.
4. Best Buying & Selling Zones
Buying Zones (Long Entry)
$1500 - $2000: A strong accumulation zone. Price could retest before resuming an uptrend.
$1000 - $1200: If ETH dips further, this becomes a high-value buy area.
DCA Strategy: Buy in increments rather than one large position.
Selling Zones (Short/Mid-Term Exits)
$3500 - $4000: If ETH rebounds, this zone is ideal for partial profit-taking.
$4500 - $5000: A major resistance; strong selling pressure expected.
5. Risk Management Strategy
Position Sizing: Never risk more than 2-5% of your total capital per trade.
Stop Loss Placement:
If buying at $2000, place SL at $1750.
If buying at $1500, SL at $1200.
Take Profit (TP) Levels:
TP1: $3000
TP2: $3500
TP3: $4500
Hedging Strategy: If holding ETH, consider using futures shorts or stablecoins to mitigate risks.
Long-Term Selling Strategy
📌 Short-Term Take Profit (TP) Targets:
$3000 - $3500 → First take-profit level in case of a relief rally.
$4500 - $5000 → Strong historical resistance, ideal for partial profit-taking.
📌 Long-Term TP Targets (2025-2026 Bull Run)
$6000 - $7500 → Based on Fibonacci Extensions.
$10,000+ → Psychological level; possible cycle top.
Fibonacci-Based Price Projections
Fibonacci extensions are widely used in technical analysis to project price targets after major market corrections.
Using Fibonacci extensions based on ETH's previous cycle:
Fibonacci Level Projected Price Target
1.618 Fib $6500 - $7500
2.0 Fib $9500 - $11,000
2.618 Fib $13,500 - $15,000
3.618 Fib (Extreme Bull Case) $18,000 - $22,000
The most reasonable long-term target is $6500 - $7500 based on 1.618 Fib.
A stronger bull market extension could push ETH to $9500 - $11,000.
If ETH follows an extreme parabolic move like 2017, $15,000+ is possible.
Institutional Adoption & Fundamental Growth
Ethereum’s value is not just speculation—it's supported by fundamental growth: ✅ Ethereum ETFs Coming → Potential spot ETF approval could drive institutional demand.
✅ Layer 2 Scaling (Arbitrum, Optimism, zkSync) → More transactions = Higher network value.
✅ Deflationary ETH (EIP-1559) → ETH supply is decreasing over time.
✅ Staking Yield (ETH 2.0) → Staked ETH reduces market supply, increasing scarcity.
Conservative vs. Aggressive Scenarios for 2025-2026
Scenario ETH Target Price
Bearish (low demand) $4500 - $6000
Moderate (standard cycle) $7500 - $10,000
Bullish (strong adoption) $12,000 - $15,000
Extreme (Supercycle) $18,000 - $22,000
Final Thoughts & Conclusion
🚀 Most Probable Target: $7500 - $10,000 in 2025-2026.
🔥 Extreme Bull Case: $15,000+ possible, but not guaranteed.
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.
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.