Ethereum is trading below $700 and could head below $600 in the coming days. The following 18-20 May Ethereum price prediction looks at ETHUSD based on Elliott wave theory.
Ethereum still stays below $700 since yesterday. Price had climbed above $800 in the first week of this month following a huge 125% rally that started in April. So far, price has returned to the same level it started this month. The wave pattern on Ethereum, during the rallies, is very similar to what we had on Bitcoin – an impulse wave. Following the impulse wave that ended earlier this month, there has been a corrective dip as expected. The corrective pattern on Ethereum is however, different from what we have on BTC.
Ethereum may be set for further rallies after the correction. Corrections are well explained and categorized in Elliott wave theory. They are well-defined with structures that can be easily identified. The corrective pattern seen on Ethereum is emerging into a double zigzag pattern. Aside their structural build-up, Zigzag patterns are often times contained in a channel line where the (wave C, Y or Z) base could act as support or resistance. The chart below shows the corrective pattern emerging on ETHUSD.
The chart above shows a 5-wave up and a possible 3-wave down. The correction could very much likely be a double zigzag pattern within a channel range. A support level could be provided at $560. A new bullish move could start from there if price shows bullish signs. A strong break below $560 down to $480 could lead to a fresh low below $350. Stay tuned for the next update.
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