In just about a week, Ethereum dropped about 30% after a 115% strong rally. Will the dip continue? Where is the next price to buy? The following is our 22 December Ethereum price prediction based on Elliott wave theory.
22 December, AtoZForex – Ethereum is one of the best performing Crypto-coins this year. It peaked at $420 in the first half of the year after which a consolidation followed resulting in a triangle pattern. In the second half of this year, price gave another opportunity for new buyers, completed the triangle just around $275 and rallied to break above the $420 previous high. Price continued last week in a move of more than 110% gain in just a week.
After the breakout, we expected a bullish impulsive wave. At the end of the 4th wave I stated the high likelihood of price peaking above $630 before the next dip. This was as a result of a corrective wave 4 triangle of the impulsive rally. The chart below was used in the last update.
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.
The 5th wave extended above $800 from $390 where the 4th wave ended. After this move, price has been dropping. The chart below shows our new forecast.
22 December Ethereum price prediction: what next?
The 3-wave correction seemed to have followed from the last high above $850 just as expected. The next level to watch out for is between $390 and $500. The bullish pressure could resume at $390-$500 zone. Any strong dip below $390 may be considered a real burst and crash and thus leading price to $200 or below. We will see what price does at this zone if it gets there. Could mean a new opportunity for buyers. Stay tuned for the next update.
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