Ethereum
Is Ethereum Ready to Launch at $5,000?
Figure 1. ETH Daily Resolution Candlestick Chart with Multiple Technical Indicators
What does it take to reach $5,000?
By the way, yesterday we updated our premium members: “It should now be in the W-ii gray zone, ideally around $3,000 +/- $50, provided it holds above last week’s low.” So far, so good, as ETHUSD hit its lowest level today at $3,072. Additionally, the colored warning levels in the chart tell us below which prices it is increasingly less likely that ETHUSD will go straight back to $5,000 +/- $200.
From a technical perspective, we can see that the daily RSI5 has broken above its downtrend line, the MACD is on a buy signal, and money flow is increasing (blue arrows). However, Ethereum price is still below its 20-day and 50-day simple moving average (-d SMA) and Ichimoku Cloud.
Assuming our analysis is correct, we want a break above the gray high of the Wi, coinciding with a break above the 20-day SMA (green). This may trigger a run towards the upper gray trendline. A break above this line, which is equivalent to a break above the Ichimoku Cloud, is necessary to confirm the gray W-iii (green arrow). At this point, routes W-iii, iv and v are simply penciled in, not set in stone – a tentative road map.
The ideal target zone for green W-5 is between $4,800 and $5,400. But we can re-evaluate this target area once we get closer to it. Overall, once W-5 green ends, we should expect a significant pullback to $3,500-4,000, but not much lower before the final wave of this bull market that began in 2022 begins. occurs around $10,000 and above.