After a sideway move last week, Ethereum continued upside and broke above the last all-time high at $520. A new high is inevitable. What are the next price levels to look for? The following analysis is based on 12 December Ethereum Elliott wave analysis.
12 December, AtoZForex - Ethereum resumed upside this week after completing a viable Elliott wave pattern. This year has seen ETHUSD making continued rally . It now looks like ETH will complete the year on a high note for investors. Earlier this month, price broke out of a long term triangle pattern. From the last leg of the triangle -wave E, price has gained more than 100% in just 4-6 weeks and making new highs. Will the rally continue?
In the last update, we analyzed the breakout wave structure. It was indeed an impulse wave. Elliott wave theory taught us that impulse waves are 5 non-overlapping waves and are seen in any of the actionary waves - wave 1,3 or 5. After observing that the impulse wave has already completed three waves upside, a corrective wave 4 was expected.The chart below was used in the last update.
Wave a of (b) was sharp. Price is expected to resume upside and break above $520. There is high likelihood that the bearish correction will continue to $375-$400 before this happens. A sudden break above wave b of (b) at $480 might definitely mean that wave (b) had already ended at wave-a low and the recent dip is just wave ii of (c).
We expected the pullback to $375-$400 with probably a zigzag or flat pattern. After about a week, price completed an important corrective wave and resumed upside from $387-390 which was within the range we envisaged. The chart below shows our new wave count.
12 December Ethereum Elliott wave analysis-ETHUSD Forecast
The correction was a triangle pattern that completed just below $390. Price resumed quickly and broke above the $520 previous high. The wave analysis is adjusted a bit to make larger wave a (an impulse wave) still be in progression. The 5th wave of this impulse wave could end at $545 or $635 before the next drop. Stay tuned for the next update.
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