Ethereum’s Short-term Elliott Wave Review: the Key Levels to Watch

Ethereum Elliot Wave Analysis

In my previous update, see here, I reviewed the big picture Elliott Wave Principle (EWP)-count for Ethereum (ETH). I found the cryptocurrency was still missing a more significant 5^th wave higher to around $10K. Unfortunately, many retail traders and investors entered ETH late last year and ran for the exits over the last few months, swearing never to touch ETH again (because it is a scam, worthless, of no use, etc.).

Others promise to “get back into it when prices have stabilized,” which means they will -unfortunately- once again “buy high and sell low.” By sharing my price-based, objective, and mathematically precise insights, I try to break this psychologically vicious cycle that primarily retail unnecessarily subjects themselves to.

The EWP -and my real-time trading alerts– help keep emotions under control as the mind is our worst enemy when it comes to trading and investing. Especially in the fast-moving world of cryptos.

Figure 1. Ethereum daily chart with detailed EWP count and technical indicators.

One last stab lower cannot be excluded just yet.

That said, let’s look at the daily price chart of ETH. See Figure 1 above. It contains a detailed EWP count of the Year-To-Date (YTD) price action. ETH bottomed for a more prominent (black) wave-a in January, rallied in three waves higher for a (black) wave-b into the early April high, and is now wrapping up the final (black) wave-c. C-waves comprise five waves, in this case (red) i, ii, iii, iv, v, which consist of five smaller waves (green) 1, 2, 3, 4, 5, etc. This repeating pattern is the fractal nature of the financial markets and the premise on which the EWP is based.

Ethereum Price Forecast

Hence, from the above, ETH has completed all of 5 of v of c of IV, or it needs one last (green) wave-5. In the latter case, ETH can still drop to as low as ~$850 (see here), and in the former case, it is already gearing up for the run to $10K+. How will we know the difference at this stage? As usual, the EWP provides a clear set of parameters/if-then scenarios.

No emotions or opinions are involved. The Bullish count is preferred if ETH can stay above ~$1050 and rally back above $1250. However, if ETH closes below $1050, it opens up the door to $900, and from there, ~$850 is the most likely ideal downside target. ETH will need to hold that final level or else succumb to more selling pressure. Forewarned is forearmed.