Ethereum remains under the bearish pressure as it heads to $200. Will price drop below this level? This Ethereum price prediction looks at what could happen next from the Elliott wave theory perspective.
July 30, 2019 | AtoZ Markets – In the last one week, Ethereum like other cryptocurrencies has seen its price plummet gradually. Ethereum dropped from $235 to $201 and then recovered to $225 last week. The week, however, ended with another fast dip to $201. Ether has been a bit volatile this week but with no direction, as it swings within a price range of $197 to $215. The dip since last week looks corrective and the price might surge toward $250 but the medium-term trend still points downside.
Bitcoin vs Altcoins: Will the king continue to rule?
At the start of 2019, Bitcoin had a market dominance of just around 55%. However, that surged to 66% at the end of June and currently at 64.5%. This dominance might increase gradually in the coming months as the price charts of Bitcoin and the Altcoins show. It seems the best trading strategy now is to buy Bitcoin against the Alts. The price chart of Bitcoin portrays possibility for more rallies. The current bearish move looks corrective. Ethereum and Ripple, on the other hand, look like they will drop further much significantly. The chart below shows the long daily chart of Ethereum, similar to what was used in the last update.
Ethereum price prediction: Elliott wave analysis
The Ethereum daily chart above shows the rejection at the $350-375 resistance zone. The dip that followed looks more like an impulse wave than a corrective wave. This could mean two things: the price would go deeper below the $82 low or the current bearish correction would go much deeper to $100 before the rally from $82 resume toward the $840 high. That’s still some weeks away. Let’s take a closer look from a lower time frame.
The chart above shows the wave analysis of the dip from $360. Price is evolving into a bearish impulse wave with the 4th wave ongoing. The 4th wave rally could continue to retest the falling trendline around $220 or break above it before dropping to the $170 support level or even $150. There is also an inverse head and shoulder pattern where the minor wave 3 (circled) ends that shows wave 4 (circled) might not have ended yet. If the bearish impulse wave ends as expected, a 3-wave bullish correction should happen afterwards to $250-270 before price resumes downside. On the other hand, if price breaks above $300, the 2019 bullish trend will most likely resume.