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Ethereum: Slides To $1200 First Before The Next Rally?

Published 09/15/2022, 03:35 AM
Updated 07/09/2023, 06:31 AM
ETH/USD
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Per my Elliott Wave Principle (EWP) count, Ethereum (ETH/USD) most likely completed a leading diagonal (red) W-i/a from the June 18 low to the August 14 high. It has since been in a corrective price pattern. Corrections always comprise three waves (W-a, -b, -c). These three waves are made up of five (5) or three (3) waves, allowing for the following corrective patterns: 3-3-3 (triangle), 5-3-5 (zigzag), and (3-3-5 (flat). Since that August high, that corrective price action is what we got so far. 

Ethereum Daily Chart

The decline into the late August low counts best as five waves lower (green W-a comprises five grey waves (i, ii, iii, iv, v). The rally from that low looks overlapping with three waves: grey W-a, -b, and -c to complete (green) W-b.

Thus, now Ethereum should be in (green) W-c of (red) W-ii/b. This setup will be confirmed on a move below the late-August $1422 low. Meanwhile, the Bulls are on full watch on a move below $1490, which will negate a Bullish setup. Below that (green) W-a low at $1422, and we can set our sights on $1320-1150 for a rather typical/classic 61.80-76.40% retrace of (red) W-i/a to complete W-ii/b. That, in turn, means the next rally, W-iii/c to ideally $3500, will get underway once the current correction is over. Conversely, I will become more Bearish if ETHUSD breaks below $1000, but that is not my preferred EWP-based POV for now.

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