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As per the Elliot wave theory, the major downfall in Ethereum which started in November 2021 is a three-wave correction. The Elliott Wave Theory is a technical analysis approach used to predict future price movements in financial markets and is based on the idea that market prices move in repetitive patterns or waves, driven by the collective psychology of investors. From the November 2021 peak of $4951, the coin price tumbled around 82% to mark a $883 low in June 2022. If the wave counts are corrected, the ETH price could start a new impulse wave.
Also Read: Bitwise Revises Bitcoin Futures ETF To Bitcoin And Ether Strategy ETF
Ethereum Price Daily Chart
- A channel pattern carries the current recovery rally in the ETH price
- The Ethereum Fear and Greed Index at 49 reflects a neutral sentiment in the market.
- The intraday trading volume in Ether is $3.25 Billion, indicating a 23.6% loss.
Source- Tradingview
Considering the first wave of impulse started from the June 2022 low of $883 to August 2022 at $2029, the second wave(correction) retraced to around 78.6% Fibonacci retracement level and bottomed around $1074.
A bullish upswing initiated from this low could be the third wave of an impulsive trend. In theory, the third wave is referred to as the most powerful and dynamic phase of a market trend.
As per the Fibonacci extension tool, the 3rd wave could be Wave 1 x 1.62%, 2.62%, or 4.25%. Thus, the potential target for Ethereum price could be $2900, $4010, or $5830 respectively.
Can ETH Price Rally to $2500?
Source- Tradingview
By the press time, the Ethereum price traded at $1853 with an intraday gain of 0.08%. The daily time frame chart shows the ETH price is resonating in a rising channel pattern. Amid the ongoing correction, the coin price would retest the support trendline to recuperate the bullish momentum. A potential reversal from this trendline would bolster buyers for a rally to $2500 registering a 35% growth. Crypto holders can maintain a strong bullish sentiment until the channel pattern is intact.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
