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Ethereum price prediction: ETH might drop to $225

Sanmi Adeagbo | Jun. 28, 2019
Ethereum price prediction: ETH might drop to $225

Ethereum dropped nearly 24% on Thursday to hit $275. The following looks at what could happen next based on the Elliott wave theory.

June 28, 2019 | AtoZ Markets - The cryptocurrency market has had an incredible year so far. Ethereum peaked at $365 on Wednesday after gaining over 350% since the $82 December low. Meanwhile, price retreated quite quickly on Thursday. Ethereum still remains the 2nd largest cryptocurrency on Coinmarketcap based on market capitalization. 

After the Thursday selloff which wiped off nearly $70 billion from the market, there is a bit of calm across the board on Friday. Ethereum is having a minor recovery from $275 to $310. Most of the week's profit is gone and investors will hope price remains above $300 to maintain a net positive week and at least a 25% gain in June after hitting 42% at $365 earlier in the week. 

After such big rallies seen since December, it's expected that there would be profit taking and thereby a bearish correction. The corrections that are seen so far in the build-up to the current bullish trend are minor and shallow. A major bearish correction will happen at any of the prices below the all-time highs before the bullish trend continues. The current sharp decline after an impressive April-to-June rally could be the start of a much deeper bearish correction. 

Ethereum analysis: important price levels

The current dip could continue to $265 and $233 which are critical Fibonacci potential support levels. The bullish trend should pick up from there. On the contrary, if the current dip is all there will be, a break above $365 will see Ether around the $500 round figure.

Ethereum price prediction: Elliott wave perspective

From the perspective of Elliott wave theory, price is completing a bullish impulse wave which is a viable way of analyzing a trend. In the last update, we expected a 4th wave dip after the 3rd wave rally. The chart below was used.

Wave 3 extended further to $365. The current dip is expected to complete the 4th wave as the new chart below shows. In addition, from a price action perspective, the weekly candle is closing below 295 and would attract further bears.

The 4th wave could continue to $260 or even retest the $225 low before pushing further upwards toward $475-$500. 

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.