The price of Ethereum (ETH) appears to be close to a significant breakout. According to analyst Kamran Asghar, Ethereum is "seconds away" from a decisive move that could take the price towards $4,400, possibly as early as mid-December.

Ethereum Price: Nearly Ready for a Breakout

On Wednesday, Ethereum displayed a classic falling wedge pattern on the price chart, a technical formation that often signals the end of a downtrend. Since early October, ETH has been moving within this pattern, and the price now seems to be approaching the upper boundary around $3,560. This level corresponds with the 0.236 Fibonacci retracement, a commonly used technical reference for support and resistance levels. A decisive breakout above this price level would be considered a bullish signal, with a potential target around $4,415. This is roughly 25% higher than the current Ethereum price.

MACD Indicator Signals Bullish Momentum for ETH

The MACD (Moving Average Convergence Divergence), a well-known momentum indicator, is currently showing a bullish crossover. This indicates that the short-term trend is gaining strength over the long-term trend, often signalling that buyers are taking control. Historically, such signals for Ethereum have often preceded strong upward movements, both in the short and long term.

What Could Threaten the Bullish Scenario?

Every potential rise carries some risks. Although the outlook for Ethereum looks promising, a breakout is not yet guaranteed. If the price fails to break above the resistance around $3,560, this could lead to a temporary decline. In that case, the price might fall back towards $3,000 to $3,200.

In the less favourable scenario, Ethereum could continue to move sideways for a longer period until it reaches the point where the two trendlines converge, around $2,700. Additionally, some on-chain indicators suggest there is still room for a minor correction. For example, the so-called MVRV band indicates the price could drop towards approximately $2,870 before a recovery begins. In short: although the technical signals are positive, it is important to account for possible fluctuations along the way.

Conclusion: Ethereum Shows Resilience, but Watch Resistance Levels

The Ethereum price is at an exciting juncture. As long as ETH manages to break above $3,560, the path towards $4,400 in the coming weeks remains open. However, investors should remain aware of potential pullbacks, particularly if the pattern is not confirmed. Ethereum remains one of the most interesting cryptocurrencies to watch over the coming period, both for short- and long-term investors.

Disclaimer: This is not financial advice. Always conduct your own research or consult a professional advisor before making any investment decisions.