Ethereum’s bullish momentum it got worse throughout the weekendand the price rose above $4,100. This continued recovery follows a robust rebound from the $3,500 region after the failure at the beginning of the month.
Investor sentiment perceptible in trading volume and flows on exchangesbecame positive in the face of economic recovery. Now, as Ethereum price action begins to turn bullish again, up-to-date technical analysis shared by cryptocurrency analyst Freedomby40 on social media platform X suggests that the current rally may not be over yet, forecasting a possible long-term rally to $16,000.
The wave number structure indicates a continuation phase
Freedomby40 analysis based on the Elliott Wave structure, presents Etherum as is currently in an extended bullish sequence that began to form in delayed 2022. While publishing a technical analysis on X, the analyst noted that Ethereum’s price action looks great to continue.
His chart shows that the asset has just completed a corrective phase and is entering a up-to-date impulse wave, with support established between $3,225 and $3,563 at the 0.5 and 0.382 Fibonacci retracement zones, respectively. The analyst defines this zone as an ideal accumulation area for the next stage of growth, in line with the structures of previous cycles observed in 2017 and 2021.
The Elliott wave projection in his analysis he presents a multi-layered confluence of impulse waves extending to the third degree. It shows that Ethereum is currently developing its fifth major impulse wave in a pattern extending to mid-2022.
The internal structure of this wave sequence also reveals a C wave in motion, which itself contains smaller sub-pulse waves. Within this wave C, Ethereum appears to be entering its fifth subwave, which is known to be a strongly bullish wave.
Based on this setup, the analyst plotted two potential target zones on the chart: a green box representing a realistic price range for this wave cycle, and a red box representing a higher, more extended scenario that could augment Ethereum’s market cap to the level of trillions of dollars.
Fibonacci extensions provide targets of $9,000, $11,000 and $16,000
Freedomby40 analysis identifies multiple price levels based on Fibonacci extensions from the current price action. The first price target is $6,303 based on Fibonacci 1.0 extension. This initial price target will push the Ethereum price above its current all-time high, but it is the first of many.
The next target, an extension of 1.236, is located near $9,013. These two price targets ($6,303 and $9,013) were described by the analyst as very realistic. Possible extensions are at the Fibonacci extension levels of 1.382 and 1.618, corresponding to $11,210 and $16,077 respectively.
At the time of writing, Ethereum is trading at $4,160, up 5.2% in the last 24 hours. Freedomby40’s predictions join a growing list of extremely positive Ethereum price predictions from institutional research houses and leading analysts. Standard charter bank recently raised its 2025 price target for Ethereum to $7,500, while forecasting a potential long-term path to $25,000 by 2028.
Featured image from iStock, chart from Tradingview.com
