ETH Impulse Unfolds Despite Slightly Missed Target Zones

Target Zones Were Slightly Missed, but the Impulse Is Still Unfolding.

Three weeks ago, see here, our primary expectation for Ethereum (ETH) based on the Elliott Wave Principle (EWP) was that “if this week’s low at $1519 holds then orange W-4 can be considered complete and orange W-5 should be underway, … a breakout above $1680 targets the next resistance at $1785-1855 [for orange W-5 of grey W-iii] based on simple symmetry (orange arrows) and Fibonacci extensions.” See Figure 1 below.

ETH topped on February 2^nd at $1712, 3.5% shy of the lower end of our ideal target, and traded at $1464 on Monday, February 13^th. Today, it is trading at new highs ($1740s).

Thus, the grey W-iii and W-iv we have been tracking should have been completed, albeit lower than initially anticipated. Therefore, the original grey W-v (green) target zone of $1950-2250 must be adjusted lower to $1785-1995. Remember, we follow the scientific process. When the evidence changes, we change accordingly.

Figure 1. Ethereum Daily Chart With Detailed EWP Count and Technical Indicators.

The Bullish Resolution Continues, but $1785 Is Resistance.

Thus, ETH must clear $1785 to reach $1900+/-100, with an ideal target of $1855+/-25. Why? Figure 1 shows the more typical relationship between the 5^th wave and the 1^st and 3^rd wave with the blue arrow. Namely, grey W-v is often 0.618x the entire grey W-i+iii rally. What was previously resistance, the horizontal orange dotted line at $1675, should now act as support. Thus we have a first new line in the sand for the Bulls to keep the upside momentum going.

Thus, albeit making slightly lower highs and lows than initially anticipated, ETH continues to follow an EWP-based impulse path. In case you may have missed the boat, please consider we keep our premium subscribers daily abreast of ETH’s developments, among other cryptos.

We already informed them on the 14^th, see here, that “We now have a clear, clean bottom in place with yesterday’s low in the ideal W-4 / W-iv target zone with positive divergence in the daily RSI5 and MFI14. That is as good as it gets and a good sign. … Thus, as long as yesterday’s low hold, I will be looking for higher prices. Ideally, $1850-2000, but with a 1st focus on $1600. From that level, ETH can then decide if it wants to break above the $1675 and $1780 resistance levels. … For now, that breakout remains our primary expectation as long as yesterday’s low holds.”

Once the green W-1 target zone is reached, with an ideal target of $1855+/-25, we will start shifting 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 the (red) floor at $1150, the Bull party will have to wait for a while as much lower prices should be expected.