Ethereum: Slides To $1200 First Before The Next Rally?
Dr. Arnout ter Schure | Sep 15, 2022 03:35AM ET
Per my Elliott Wave Principle (EWP) count, Ethereum (ETH/USD) most likely completed a leading diagonal (red) W-i/a from the June 18 low to the August 14 high. It has since been in a corrective price pattern. Corrections always comprise three waves (W-a, -b, -c). These three waves are made up of five (5) or three (3) waves, allowing for the following corrective patterns: 3-3-3 (triangle), 5-3-5 (zigzag), and (3-3-5 (flat). Since that August high, that corrective price action is what we got so far.
The decline into the late August low counts best as five waves lower (green W-a comprises five grey waves (i, ii, iii, iv, v). The rally from that low looks overlapping with three waves: grey W-a, -b, and -c to complete (green) W-b.
Thus, now Ethereum should be in (green) W-c of (red) W-ii/b. This setup will be confirmed on a move below the late-August $1422 low. Meanwhile, the Bulls are on full watch on a move below $1490, which will negate a Bullish setup. Below that (green) W-a low at $1422, and we can set our sights on $1320-1150 for a rather typical/classic 61.80-76.40% retrace of (red) W-i/a to complete W-ii/b. That, in turn, means the next rally, W-iii/c to ideally $3500, will get underway once the current correction is over. Conversely, I will become more Bearish if ETHUSD breaks below $1000, but that is not my preferred EWP-based POV for now.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.