Ethereum’s Bullish Elliot Wave Count Remains On Track

The Rally From the June 18 Low is Complete

Two weeks ago, see here, I updated you on my short-term Elliott Wave Principle (EWP) count (based on a daily-resolution chart) as I had been looking for Ethereum (ETH) to reach $2100+/-100 since late July (see here).

ETH topped on August 14 at $2028 and now sits at $1640. So far, so good. Albeit the devil is always in the details, and one cannot forecast each daily scribble correctly, the EWP is in the hands of a skilled analyst unmatched in finding where prices will top and bottom. My premium crypto trading members reap the benefits of that. Figure 1 below shows what I expect next.

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

Correction Underway, Higher Prices Thereafter

As I wrote two weeks ago,”if ETH can stay above … $1561, it should be able to target the low 2000s. From those higher levels, I anticipate the cryptocurrency moving down … to ideally $1400+/-100.” The down is now underway, and the downside target zone has almost been reached. But it appears a bounce (green wave-b) and another leg lower (green wave-c) are needed to complete the anticipated (red) wave-ii/b.

I expect the bounce to reach resistance at around $1750-1800, and then the 2^nd leg lower should ideally go to $1200+/-100. I know this target zone is slightly lower than initially anticipated, but back then, I did not even have any accurate information on where exactly ETH would top. Now that Ethereum topped, about $70+ lower than expected, the wave-ii/b target zone is also adjusted. Remember: all we can do is anticipate, monitor, and adapt.

The general path laid out a month ago is still unfolding as anticipated, so I see no reason to change my perspective until ETH breaks below the June lows. But at this stage, I don’t think that will happen. Thus, what we said two weeks ago remains valid, after the next significant pullback Ethereum could register the next leg up.