Ethereum’s falling wedge pattern points to a possible 25% rally if price breaks above $3,560.
MACD crossover and RSI recovery confirm improving momentum across short-term timeframes.
Whale accumulation over $350M in ETH supports long-term market confidence.
Ether is also beginning to reverse strongly as the traders observe a breakout of a descending wedge. A renewed whale accumulation and momentum indicators have put market attention on a possible continuation of the upside in December.
Ethereum Builds Technical Foundation for Recovery
Ethereum’s price structure suggests the market is preparing for a possible breakout after weeks of narrowing price action. The asset has been trading within a falling wedge formation, a pattern that often precedes bullish reversals once the upper resistance line is breached.
The wedge has already assumed form between descending resistance lines and rising support lines and is slowly narrowing the trading range. Every bid to bust lower has received huge demand between $3000 and $3200 dollars which is an indicator of exhaustion among sellers. This steady support base reinforces the chances of a technical turnaround in case of buyers regaining power.
The possible breakout area is near $ 3,560, which also coincides with the 50-day exponential moving average. Any move above this would, particularly with growing volume, decisively change the trend to the upside and put the market on a track to the estimated target of $4,415, a move of approximately 25 percent off current prices.
Analyst Highlights Bullish Signals in Ethereum’s Setup
A tweet from Joe Swanson (@Joe_Swanson057) brought renewed attention to Ethereum’s chart, stating that “$ETH is confirming a bullish falling wedge pattern, supported by a bullish crossover on the MACD indicator. A decisive move could trigger a 25% rally, eyeing a mid-December target of $4,415.”
Source: Joe_Swanson057 on X
The MACD crossover, often viewed as a signal of changing momentum, adds weight to this outlook. The indicator showed a positive shift after some sideways trading and this could thus indicate that it has shifted towards the buyer dominance. Equally, the Relative Strength Index (RSI) is regaining its lost grounds and this indicates that Ethereum has more to travel before it becomes overbought.
The traders are following the $3,560 region. The long-term breakout above this would place the market in the near future at the level of $3,800 and $4,000. However, one should make sure that such support does not drop below the mark of $3,300 so as not to lose the bullish formation. Any failure to hold that zone can prolong the existing process of consolidation until any decisive move is formulated.
Market Activity Reflects Accumulation and Steady Confidence
On-chain and market data show that there is accumulation despite the short-term volatility. Large holders are believed to be more stable as Ethereum whales have reportedly bought more than 350 million ETH during their declines. This trend is generally associated with accumulation patterns that lead to more general uptrend patterns.
Ethereum as of writing trades at $3,397 over the last 24 hours and it dropped to 2.43% and daily volume declined to 17.28% to $33.12 billion. Market capitalization stands at $410.03 billion, which is almost equal to its fully diluted valuation and this indicates a balanced supply in circulation. This reduction in the trading activity is an indication that investors are seeking a clear directional signal before they can immerse themselves into the market with strong force.
Should the falling wedge breakout materialize, then Ethereum may pass out of its current accumulation phase and have a new expansion phase going to the target of $4,415 before mid-December. The combination of technical compression, advancing momentum, and the whale participation, which is visible, promotes the environment in which a bullish continuation is becoming more and more likely.
