Ethereum Breaks $3000 in Bullish Wave 3 After Weekend Gap

By May 3, 2021Ethereum
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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.

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:

  1. 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).
  2. 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.
  3. We can evaluate today’s daily candlestick when the candle closes.
    1. A strong candle close indicates that the bulls are fully in control and a push higher is likely (green arrow)
    2. A weaker candle close indicates that a pullback or a pauze could take place first. But the uptrend is so strong that a continuation higher is expected (blue arrow).
  4. 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):

  1. The current bullish move up is typical for a wave 3 (orange).
    1. Price action has already passed the -261.8% Fibonacci target for instance.
    2. And also, the angle of the price swing is very steep.
  2. 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.
  3. Eventually price action will complete a wave 3 (orange) and a pullback to and bounce at the 21 emas and Fibonacci levels around $2900, $3000, and $3250 (in case price reaches $3500) is likely.

Good trading,

Chris Svorcik

The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter

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