Ethereum Price Prediction As Elliott Wave Theory Hints Rally to $3400
Ethereum Price Prediction: Amidst the recent downturn in the crypto market, the Ethereum price recovery took a breather after surging to a high of $2,137, experiencing a temporary drop to $1,900. Analyzing the daily chart, it appears this pullback might be part of a 4th wave correction within the Elliott Wave Theory, potentially setting the stage for a forthcoming 5th wave impulse.
Also Read: This Whale Astonishingly Becomes Largest Depositor On Ethereum L2 Blast Bridge
Ethereum Price Prediction: Will $ETH Surpass $2500?
- A rising wedge pattern governs the current recovery trend
- A post-correction rally could set the ETH price for 18% surge
- The intraday trading volume in Ether is $10.3 Billion, indicating a 66% gain.
Source- Tradingview
The Elliott Wave Theory is a method used in technical analysis to predict future price movements by identifying patterns in market cycles.
The ongoing recovery of the Ethereum coin, kicking off in mid-October, aligns neatly with the Elliott Wave Theory’s framework. The first wave saw the ETH price peak at $1,656, followed by a second wave correction to $1,543.
With the broader market’s recovery, the altcoin surged in a third wave and reached a 7-month high at $2,137. Furthermore, the ETH price experienced a 4th wave correction in the third week of November, marked by a downward-sloping resistance trendline. This pullback assisted buyers in recuperating the exhausted bullish momentum for the next leap/
On November 22nd, while major altcoins attempted to recover from recent sell-offs, the Ethereum price notably broke out from the overhead trendline, potentially signaling the initiation of a 5th wave impulse.
Using the Fibonacci extension tool to project the 5th wave, it could potentially reach around 0.618 or $1.618 times (wave 1 + wave 3) against the wave 4 correction, implying a potential target of $2,380 or $2900 for Ethereum’s price.
Is ETH Poised for Further Correction?
Source- Tradingview
With an intraday 2% loss, the Ether price currently stands at $2,070. This dip raises questions about whether the price has genuinely entered the fifth wave. However, should the aforementioned bullish thesis hold true, a climb to $2,800 could spark a bullish breakout from a long-standing rising wedge pattern. Such a breakout might indicate a significant trend reversal, potentially strengthening the recovery outlook and aiming for an extended rally toward $3,400.
- Relative Strength Index: The formation of a higher low in the Ethereum price despite a lower low drop in RSI suggests a reverse bullish divergence in this momentum indicator. This accentuates sellers’ attempts but highlights the potential neglect of their influence.
- Exponential Moving Average: The slopes of the 20 and 50-day EMA might provide initial support during intermittent pullbacks in the price