Ethereum bounced off $450 (an important technical price level) last week. What should we expect this week? The following 25-27 March Ethereum price prediction looks at ETHUSD based on Elliott wave analysis.
25 March, AtoZForex - Bitcoin dominance has been increasing since the second week of January. Ethereum and Ripple, at a point this year, diluted this dominance. In the beginning days of the year, Ripple burst upside. Ethereum even rallied for longer period. All these happened when Bitcoin was still in the red. In recent times, Ethereum and Ripple have lost this independence on Bitcoin. They have both dropped massively as the Crypto market bearish move persists. It's easier to say which direction ETH and XRP will move - just check BTC. Despite this observation, ETH and XRP are still capable of bringing up surprises as they tend to deviate from the norm.
In the last update, we stated high likely price levels where Ethereum could bounce and commence a partial or full bullish recovery. The chart below was used in the last update.
Let’s go back to the higher time frame. The drop from the all-time high still looks corrective, probably wave 2 or 4 of the long-term bullish trend. Using Fib-ratio analysis, 61.8% and 100% Fib extension of wave X from Y lies at $450 and $120 respectively. Price is now at the first level, $450. If there is no bounce off $450 or slightly below it, there is a high likelihood that a bridge below $450 will lead price further downside to $120. Do you think this can happen? It’s a high possibility.
What happened afterward? Price bounced off $450 and quickly rallied to $590 last week. This could not be sustained as price dropped back to $500. Presently, ETHUSD trades around $500-$520. The chart below will look at intraday levels which must be taken out for the next direction.
25-27 March Ethereum price prediction: what next?
In the coming weeks, price could break above $590 top or below $500 and $450 low. There are two wave counts to follow this expectation. The first scenario is labelled black - a rally above $550 and $590. The second scenario is in green - price breaking below $500 and eventually $450. If the second scenario happens, the next bearish target will be $120.
What's my preferred Scenario?
The first scenario is preferred in as much as price stays above $450 important support. Stay tuned for the next update.
Do you have other views in contrast to the ones listed or you want to compliment them further? let’s know by your comment below.
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