Ethereum Breaks $3000 In Bullish Wave 3 After Weekend Gap

The Ethereum (ETH/USD) daily price chart is showing massive bullish momentum. The break away from the moving averages is strong and the angle of the 21 EMAs and 20 HMA is steep (ETH-X).

As mentioned in our previous analysis, price action managed to complete its correction at the 21 EMAs and support trend line (green) for a continuation higher. Let’s now review the next steps.

Price Charts and Technical Analysis

The ETH/USD gapped higher over the weekend. The price action reached is now passing the -61.8% Fibonacci target (orange) after bouncing at the 38.2% Fibonacci level:

  • The current push up is confirming a strong rally – see the bars and lines on the AO and ecs.MACD (pink box) – within waves 3 (purple/red).
  • Also the moving averages (MAs) are confirming a full uptrend. The MAs are aligned, show a strong bullish angle, and the distance between them is increasing.
  • We can evaluate today’s daily candlestick when the candle closes. 
    • A strong candle close indicates that the bulls are fully in control and a push higher is likely (green arrow)
    • A weaker candle close indicates that a pullback or a pauыe could take place first. But the uptrend is so strong that a continuation higher is expected (blue arrow).
  • The next Fibonacci target is located at the -100% Fib level near $3,500.

On the 4 hour chart, price action made a wave 1-2 (orange) pullback indeed after completing an ABC (orange) pattern in wave 4 (grey):

  • The current bullish move up is typical for a wave 3 (orange). 
    • Price action has already passed the -261.8% Fibonacci target for instance. 
    • And also, the angle of the price swing is very steep.
  • A pullback does not have to be a wave 4 (orange) of this degree. It could easily be a pullback on a lower degree before the wave 3 (orange) is ready.
  • Eventually price action will complete a wave 3 (orange) and a pullback to and bounce at the 21 УЬФs and Fibonacci levels around $2900, $3000, and $3250 (in case price reaches $3500) is likely.
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