Ethereum continued its long-term uptrend after breaking out from a 5-month consolidation pattern on the 23rd November.
After moving mainly sideways last week, Ethereum’s price has shot up this week coming close to the $800 mark before pulling back. Ethereum has seen an increase of more than 80% from lows to highs so far this month.
Momentum is definitely to the upside for Ethereum, but it may need to consolidate here before making another attempt at breaking through $800.
Let’s take a look at Ethereum on multiple timeframes and see what the price action is telling us.
ETH/USD – Weekly Chart
You can see on the weekly chart the 5-month consolidation pattern and where price broke out to resume the uptrend.
Since breaking out, price has powered higher which you can see by the large green candles. This move higher has also been accompanied by increasing, higher than average volume which is bullish.
Price found resistance near $800 and has pulled back slightly since. This makes $800 a critical area for Ethereum to overcome and if it does, $1000 would be the next obvious target.
ETH/USD – Daily Chart
The daily chart gave a secondary entry point as a small consolidation pattern formed before breaking out higher. We may see another consolidation pattern form here as the price appears to be resting after finding resistance at $785.
Volume has increased on each breakout which is bullish and shows us that Ethereum is being accumulated. If the price pulls back or consolidates here, we want to see this accompanied by lighter volume to prove there is no substantial selling.
$785 is the all-time high and resistance area that the price needs to overcome. Next stop after that could be $1000.
ETH/USD – 4-Hour Chart
The small consolidation pattern is a lot clearer to see on the 4-hour chart. This may also be the case if price consolidates here and forms a pattern like a bull flag or channel.
I would expect any patterns to form within the $600 to $785 price range. If we see a broader pullback, the next area of support would be at $525 near the previous breakout point.
Key areas to watch:
- Near-term resistance at $785 and $800.
- Price target of $1000 if price breaks above $800.
- Support near $600 or $525 if price continues to pullback.
- Heavy volume on a move above $785 showing accumulation.
- Light volume as price pulls back or consolidates showing lack of sellers.
- Chart patterns like flags or channels to form as price consolidates.
Could Ethereum hit $1000 before Christmas? Is it over or under-valued? We would love to hear your thoughts on Ethereum in the comments section below!
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