Ethereum is expected to rally further toward $350 but a dip toward $200 is expected prior to that.
May 22, 2019 | AtoZ markets – From a technical perspective, it seems Ethereum will continue downside to prices above $200 before making the next round of rallies toward $350 resistance price level. The 2nd-ranked crypto on Coinmarkepcap gained over 65% in May when it rallied and hit very close to $280. The May 17 Bitcoin fast crash dragged the Altcoins along and Ethereum quickly dipped to $228. The last three days have seen minor recoveries to $265 but not yet enough to make a new high above $280.
ETHBTC technical analysis: Elliott wave perspective
Since the turn of the year, Ethereum measured up to Bitcoin in terms of net price changes. Since the December 2018 low, the two cryptocurrencies have maintained over 150% growth. However, overall, Bitcoin has outperformed Ethereum since the start of the 2018 bearish trend as the ETHBTC price chart below shows.
Since mid-2017, Bitcoin has had the upper hand with a simple zigzag pattern emerging. Wave C is ongoing and at the 4th wave which could complete a triangle pattern before the next bearish breakout. Wave iv (circled) started in 2019. The two have grown at similar sped but BTC has done a bit better. In the coming months, it’s very much likely that Bitcoin will outperform Ethereum as the pair drops below 0.02.
Ethereum price prediction: Elliott wave perspective
Since the April breakout, ETHUSD price is probably emerging into a bullish impulse wave. In the last update, the chart below was used to illustrate how the ETHUSD price could move in the coming weeks.
Wave 3 is still in motion. The current dip is the sub-wave (iv) of the wave iii (circled) of 3. This shows that price could advance further to $350-400 where we have a strong resistance zone. Only a dip below wave 1 top at $167 would violate this price development. Wave (iv) is currently still developing and will most probably take another leg toward $215-$230 price zone as the chart below shows.
Wave (iv) could end with a simple zigzag pattern. A dip below the wave b channel could continue to $220 or below before price surges further. Wave (iv) is expected to stay above $200. If the price moves as expected, the next bullish target is $350.