Can Ethereum Reach $3000?

The Pullback Target Zone Was Reached, and the Impulse Higher is Still Unfolding

Unfortunately, it has been a month since we updated you on Ethereum (ETH); see our latest article here. However, our primary expectation based on the Elliott Wave Principle (EWP) concluded back then,

“Once the green W-1 target zone is reached, with an ideal target of $1855+/-25, we will shift focus to the anticipated green W-2 back to the $1300-1400 region, from where green W-3 can start. However, if ETH breaks below … $1150, the Bull party will have to wait a while as much lower prices should be expected.” See Figure 1 below.

ETH topped on February 16 at $1741, only 4.5% shy of the lower end of our initial target set forth a month beforehand, and bottomed at $1372 last Friday, March 10 exactly within our target zones. Today, it is trading at new highs ($1780s). Thus, the green W-1 and W-2 setup we have been tracking since January 10 (see here) should now be complete. This foresight is the true power of the EWP, as few would have foreseen this setup more than two months ago without it. Our premium members reap the benefits of our EW-based foresight, as we informed them Sunday that a low-risk-high-reward low was most likely in place. See here.

The Bullish Resolution Continues, but $1372 Must Hold

ETH should now be in the starting gates of W-3 (green) with an ideal target zone of $2550+/-50 for as long as last week’s low holds. From there, we expect a green W-4 to unfold, followed by a green W-5 to $3000+. Remember, we follow the scientific process. When the evidence changes, we change accordingly.

In more detail, green W-3 should subdivide into five smaller (grey) Waves i, ii, iii, iv, and v. Currently, grey W-i should be underway and close to topping out. A pullback, grey W-ii, back to support at around $1550+/-50 would be somewhat normal before the grey W-iii kicks in. Thus, albeit making a slightly lower high than initially anticipated months ago but bottoming right in our ideal target zone outlined in January, ETH continues to follow our preferred scenario of an EWP-based impulse path. As long as last Friday’s low at $1372 holds, called the floor, we continue to view ETH as long-term Bullish.