Ethereum Consolidates Within Neutral Zone Awaiting Breakout from Pivotal Levels

Ethereum  (ETH/USDT) - 1D Chart Analysis 

Date of Analysis: January 28, 2025 

Period of Chart: Daily 

Strategic Scenario (6 to 12 months) 

Ethereum remains within a neutral-to-bullish long-term trend, framed by these key levels: 

Resistance: $4,840 

Support: $2,120 

The current consolidation phase aligns with a Wave (IV) corrective structure in Elliott Wave terms. This phase typically precedes a significant directional move. A breakout above $3,700 (Resistance Pivot) would enhance the bullish outlook, targeting $4,840. Conversely, a breakdown below $2,820 (Support Pivot) may deepen the correction toward $2,120 and potentially $1,790. 

Tactical Scenario (1 to 3 months) 

Ethereum is trading within a well-defined neutral zone, bounded by: 

Resistance Pivot: $3,700 

Support Pivot: $2,820 

Price action reflects indecision as the asset consolidates near the pivot support level. Momentum indicators, including the RSI, highlight weak bullish momentum, suggesting continued range-bound movement in the short term. A breakout or breakdown from this zone will determine the next tactical direction. 

Directional Breakout Scenario 

Bullish Case: 

A daily close above $3,700 confirms a breakout, targeting $4,840. 

Bearish Case: 

A breakdown below $2,820 signals increased bearish momentum, targeting $2,120 and possibly $1,790. 

Technical Key Elements 

RSI (14, SMA 50): Currently at 49.84, indicating a neutral stance with a slight bearish inclination. 

Signal: Neutral-to-Bearish, consistent with the consolidation phase near support levels. 

Moving Averages (EMA): 

Ethereum trades below both the 20-day and 50-day EMAs, which currently act as dynamic resistance. 

Signal: Neutral with slight downside bias, indicating weak upward momentum. 

Fibonacci Levels: 

Resistance Pivot: $3,700 

Support Pivot: $2,820 

Tactical upside extends to $4,840, while tactical downside reaches $2,120. 

Elliott Wave: 

Ethereum appears to be consolidating within Wave (IV), respecting the $2,820–$3,700 range. A breakout or breakdown would signal the end of this corrective wave. 

Tactical Trade Recommendations 

🎯 Bullish Strategy: 

Go long above $3,700 (daily close), targeting $4,840. 

🚨 Bearish Strategy: 

Go short below $2,820 (daily close), targeting $2,120 and potentially $1,790. 

Chart: Daily Basis (Candle Stick) - Logarithmic  

Indicators: Exponential Moving Average (21/34/89) - RSI (21) 
 
 

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