Ethereum aims for $6,000! New highs expected from wave theory and Fibonacci extension resonance.

Ethereum (ETH) has been showing strong performance recently, with market attention shifting towards a potential target above $6,000. According to the Elliott Wave (EW) theory and multiple resonances of Fibonacci extensions, technical analysis indicates that ETH is still expected to break through its all-time high. This article will delve into the recent price structure, key support and resistance levels, and combine wave theory to forecast ETH's next market movements.

Elliott Wave Theory Accurate Prediction of Short-Term Trends

(Source: FXStreet)

Three weeks ago, when the ETH price was around $3,400, the EW theory predicted that a short-term top would appear at the red 100% Fibonacci extension level (around $3,600), followed by a W-iv wave correction to around $3,250. The actual movement also accurately validated this prediction: ETH reached a high of $3,859 on July 21, subsequently corrected to $3,510, and then rebounded to $3,941 on July 28, demonstrating the reliability of wave theory in capturing key turning points.

Short-term support and bull market caution line are clear

According to the latest wave count, the recent low of 3,356 USD for ETH likely marks the end of the green W-4. The ideal target range for W-ii is between 3,450 and 3,555 USD, with the actual low of 3,546 USD being very close. As ETH breaks through 3,737 USD, the market enters a new round of W-5 upward wave, with the bull market alert lines set at 3,737, 3,648, 3,546, and 3,356 USD respectively. As long as these key supports are not broken, the upward trend of ETH is expected to continue.

Fibonacci Extension Target Resonance Above $6,000

(Source: FXStreet)

Technical analysis shows that the red Wv wave 200% Fibonacci extension target is at $5,100, while the 200% extension on a logarithmic scale points to $6,200, and the linear scaling 300% extension target is approximately $6,190. These multiple technical targets are highly consistent, suggesting that ETH is likely to experience an extended fifth wave upward, breaking through $6,000 or even higher. In the history of the crypto market, such extended fluctuations are common during strong bull market phases.

Extended volatility may lead to a new round of bull market

If ETH can continue to hold the key support mentioned above and confirm a breakout above recent highs, the market is expected to welcome a new wave of upward momentum. Combining wave theory with multiple Fibonacci targets, a price above $6,000 is not just a dream, but a realistic possibility backed by solid technical foundations. Investors should closely monitor the volatility structure and changes in trading volume to look for signals for the next round of market initiation.

Conclusion

Ethereum, under the multiple resonance of wave theory and Fibonacci extension levels, aims for a new high of $6,000. As long as the key support level is not broken, the explosive market of the extended fifth wave is still expected to be realized. Investors should continue to follow technical indicators and market sentiment to seize potential bull market opportunities and welcome a new round of historic breakthroughs for ETH.