Ethereum is forming a wedge pattern and traders believe a break above $3.59K could lead to $4K.
Buyers are watching the $3.5K line to confirm if the support level holds for a stronger rebound upward.
Fibonacci levels show ETH has room to rise if momentum builds above the current resistance near $3.6K.
Ethereum (ETH) is showing signs of recovery after a 38% Fibonacci retracement pullback, finding short-term support at the $3,500 level. The digital asset is now testing the 50% Fibonacci zone with traders watching for a higher low formation. If support holds, analysts anticipate a bullish move that could drive ETH toward the $4,000 mark.
https://twitter.com/tempo_cap/status/1952931870859247637 Market Reaction to Fibonacci Levels
Ethereum recently experienced a significant price correction following its rally, reaching the 0.618 Fibonacci level near $3,504.38. This level often serves as a reversal zone where buyers step in, suggesting a potential trend continuation. On the chart, ETH is maintaining its upward trendline, indicating possible strength if the $3,500 zone holds firm.
The chart also shows several key Fibonacci retracement levels: 0.236 at $3,525.63, 0.382 at $3,592.61, and 0.5 at $3,548.50. These resistance levels are critical in assessing Ethereum's near-term direction. A break above $3,592.61 could open the door for momentum toward $4,000.
Price structure remains within a descending wedge, which is typically a bullish reversal pattern. If Ethereum breaks out of this wedge to the upside, it may signal the end of the correction phase. The RSI (Relative Strength Index) on the 1-hour chart is around 45, suggesting ETH is not currently overbought or oversold.
Analyst Sentiment and Support Zones
Crypto market analyst TommyJR stated that Ethereum is “up close after large 38Fib pullback” and is “currently at the 50Fib.” According to his analysis, a hold above the $3,500 level is essential for continued bullish momentum. The analyst suggests that this zone could establish a higher low formation, which often precedes upward continuation.
He also mentioned that “if this pullback puts in a higher low,” he may consider adding more ETH holdings. This kind of trader sentiment implies that confidence remains in Ethereum’s long-term uptrend. Moreover, the market is closely observing support levels at $3,258.73 (0.382) and $3,043.39 (0.5), should the $3,500 zone fail.
Notably, the asset has not yet revisited the previous green support level established in June. This level, along with the ascending trendline from late June, forms a critical technical confluence. Sustained trading above these levels may lead Ethereum toward a breakout.
Will Ethereum Confirm a Bullish Reversal Toward $4,000?
Ethereum’s next move depends largely on its ability to maintain support above $3,500 and break through resistance levels. Traders are particularly watching the $3,592.61 and $3,525.63 Fibonacci lines for confirmation of bullish continuation.
Market behavior within the descending wedge will also be key. If ETH breaks above the wedge’s upper boundary, bullish sentiment may gain traction. A move toward $4,000 would require volume support and consistent higher lows.
The RSI and trendline support are aligning with this thesis. However, failure to hold $3,500 could shift focus toward the $3,258 or even $3,043 support levels. Overall, the upcoming sessions will be pivotal in determining if ETH is ready for another leg higher or due for extended consolidation.
