Is Ethereum Still on Track for $3000?

Pullback Target Zone Reached

Ethereum (ETH) has mostly gone sideways since our last article, see here, from three weeks ago but is now trying to break out. Our primary expectation based on the Elliott Wave Principle (EWP) concluded back then,

“ETH should now be in the starting gates of Wave-3 (green) with an ideal target zone of $2550+/-50…. From there, we expect a green W-4 to unfold, followed by a green W-5 to $3000+.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.” See Figure 1 below.

ETH topped the same day of our article at $1783, and bottomed at $1615 the next day, March 15, only 0.9% away from our “grey W-ii” target zone. Today, similar to our last update, it is trading once again at new highs ($1860s). Thus, the green W-1, 2; grey W-i, ii setups we have been tracking since January 10 (see here) should now be complete. In fact, ETH should now be in blue W-iii of orange W-3 of grey W-iii as long as it can stay above yesterday’s low at $1765.

The Bullish Resolution Continues, and Now $1685 Must Hold

Why is the $1685 level so critical? Because below that level means what is called a set of nested 1^st and 2^nd waves in EWP-terms is invalidated, with already a first warning for the Bulls below yesterday’s low. See Figure 2 below. In that case, we are dealing with a more complex grey W-ii in the form of an irregular flat. And we then anticipate $1550-1600 to be reached again before the Bullish sequence starts anew. However, that is our alternate option for now.

You may think “So you say it can go up or down…” but that is not what we are saying. Instead, what we are saying is our preferred, primary expectation remains for higher prices, as we have been correctly Bullish on ETH since January, but we recognize that ETH will have to stay above certain levels to keep that immediate upside momentum going. Those levels can be used as one’s stops for example. Being cognizant of those price levels prevents disaster to one’s portfolio.

Thus, in more detail, green W-3 should now be underway and as stated in our last update “subdivide into five smaller (grey) Waves i, ii, iii, iv, and v.” Currently, grey W-iii should be underway. Thus, ETH continues to follow our preferred scenario of an EWP-based impulse path higher and has topped and bottomed in most of our forecasted EWP-based target zones. See the blue target zones in Figure 1. This foresight is the true power of the EWP, as few would have foreseen this set up months ago. Our premium members reap the benefits of our EW-based foresight, and so should you. Thus, as long as $1685 holds, we continue to view ETH as immediately Bullish.