- ETH holds above the 0.786 retracement, signaling strong support.
- A breakout above $4,700 could confirm the next bullish wave.
- $225 million in shorts liquidated, boosting market optimism.
Ethereum Approaches Key $4,700 Breakout Zone
Ethereum (ETH) continues to dominate crypto conversations, a recent analysis by Quantum Ascend on X highlights a potential bullish breakout. The chart, showcases a complex W-X-Y double zigzag correction, with ETH currently trading above the critical 0.786 retracement level. This resilience suggests the macro trend remains intact despite a surprising pullback. Analysts are eyeing a decisive move above $4,700 as confirmation of the next upward wave, fueled by recent market momentum where ETH reclaimed $4,000 amid a broader crypto surge.
Short Liquidations Amplify Upward Momentum
The chart delineates a multi-wave pattern, with the price action closing within a defined channel. This structure indicates that while a significant knockback occurred, the support held firm, setting the stage for a potential rally.
The 0.786 retracement level, a key Fibonacci marker, has acted as a strong support zone, reinforcing trader confidence. A break above $4,700 could trigger a wave of buying, aligning with the $225 million short liquidation event that rocked the market on October 12, 2025, as Bitcoin soared past $114,000.
Market Eyes $4,700 for Bullish Confirmation
However, the analysis isn’t without skepticism. Some X users, like @XFBAcademy, question the wave count’s validity, citing rule breaches in Elliott Wave theory. Despite this, the prevailing sentiment leans optimistic, with traders like @bullievecto praising ETH’s tenacity at the 0.786 level. All eyes are on $4,700—will ETH shatter this barrier and ignite a new bullish phase?
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
