Ethereum’s Elliott Wave Points to $3,400 Target; Watch $2,743 Resistance Closely

Ethereum's Wave 5 could push prices toward $3,400 if it breaks above the stubborn $2,743 resistance level.

A six-year symmetrical triangle is compressing price action, with a potential breakout target near $8,000 in sight.

Traders eye $2,600 as a crucial support—closing below may trigger short-term turbulence despite strong fundamentals.

Ethereum’s price action is currently navigating critical technical levels, with Elliott Wave patterns and long-term chart structures signaling potential breakout opportunities. Market participants are closely watching key resistance zones as momentum builds ahead of a possible significant move.

According to market analysis, Ethereum’s current structure reflects a textbook five-wave count that began near the $1,900 region. Wave 1 extended aggressively toward $2,740, followed by a steep Wave 2 retracement that bottomed around $2,200, yet held a higher low. Wave 3 reclaimed lost ground and retested $2,743, forming a double top and marking a significant resistance barrier.

Source: Post on X

It is noted that Wave 4 appears corrective, with price now hovering just under $2,630. This zone has acted as a stabilizing base, aligning with previous support clusters and Fibonacci retracement levels. The analysis adds that Wave 5, if confirmed, could target the $3,400 region based on traditional Elliott Wave extension logic.

The horizontal resistance at $2,743.20 remains pivotal. Price has approached this level multiple times but has yet to close above it convincingly. This has led to increased buying pressure just beneath resistance, a condition that often precedes breakout surges. Not only that, each wave has maintained clear separation and proportion, with no signs of structure invalidation or divergence.

Macro Compression Builds Toward High-Impact Move

A separate long-term chart reveals Ethereum tightening within a six-year symmetrical triangle dating back to 2018. Price action has compressed significantly between converging trendlines, with the current price trading near $2,616, still inside the triangle’s upper half.

Source: Post on X

It is pointed out that the May monthly candle has risen over 16% and now pushes against the structure’s resistance trendline near $3,600. The projected breakout above this level could initiate a move toward $8,000. This target is derived from measuring the triangle’s full height and applying it from the breakout point.

What’s equally important is the pattern’s similarity to Ethereum’s 2020 breakout setup. That cycle also followed prolonged compression, ending in vertical expansion. Even so, confirmation still hinges on Ethereum closing above the upper triangle line, without which the current move may remain range-bound.

Sentiment Remains Divided at Critical Levels

While bullish structures persist, some traders warn of turbulence if Ethereum closes below $2,600. Meanwhile, fundamental enthusiasm around smart contracts and real-world use continues to support long-term accumulation.

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