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10 days ago, see here. Based on the Elliott Wave Principle (EWP), our main expectation was for Ethereum (ETH) to start to finish the lower 3.Work4Work and 5Work The wave was for the rally, which had already started last November, and the “… ETH should be in (blue) nano W-iii, (orange) micro W-3, (grey) min W-iii, (green) min W-1. [to] A rally from the November 2022 high of $1671 to the next resistance level is developing.“
At that time, ETH traded up to $1610, fell to $1502, and reached $1680 a few days later, completing waves (blue) iii, iv avo orange W-3. See Figure 1 below. The cryptocurrency bottomed at $1517 earlier this week and could still attempt another stab at the $1500 support level, but a break above $1680 is the next resistance at $1785-1855 based on simple symmetry ( orange arrow) and targeted Fibonacci extension.
The bullish decision remains, but $1,500 must be maintained.
That is, if this week’s low of $1519 holds, the orange W-4 is complete and the orange W-5 is in progress, breaking down into 5 waves (blue) as shown. Continuing face-to-face allows us to continue to increase the level of basic expectation invalidation. Starting at $1074, $1350, and now $1500 is the price level.
The strength of the recent rally (RSI14 to 86, MACD to 99, Money Flow Index to 100, see Technical Indicator (TI) in Figure 1) is 3Work 3’sWork Shake and support the idea that ETH will move higher. Furthermore, the black circle compares the current TI setup to the June-August rally and finds some similarities to align the EWP numbers then and now.
So ETH continues to follow the EWP path we expected. So the Bulls should still be able to target $1950-2250 above $2100+/-100. Upon arrival, a greater reduction should be expected. However, our main focus right now is the low $2000 range, and to get there, ETH needs to A) stay at the $1500 level and B) break above $1680. Then target $1785-1855 where the next short-term pullback (grey W-iv) is expected to take place.
