Ethereum corrects to $180 on Tuesday after a minor bounce. The following technical analysis is based on the Elliott wave theory.
September 10, 2019 | AtoZ Markets – For the last one month, Ether price has been trading below $200. However, price has gone sideways as the bearish momentum plummets. On the other side, the bulls are not pushing higher and the price has thus gone range-bound since the mid-August bearish break below $190. Currently, Ethereum is priced at $180 and still remains the 2nd largest crypto with its $19.5 billion market capitalization according to data available on Coinmarketcap.
Ethereum analysis: important price levels
There hasn’t been much movement today. The day started with a $5 surge to $184 which is above Monday’s high. Shortly afterwards, Ether started dropping and now very close to the current daily low of $179. There is a minor support level (yesterday’ low) at $176 and a major support zone at $163-164. If Ether drops below $176, it might plunge below the support zone toward $150. To the upside, on the other hand, a surge above $186 (yesterday’s high) might lead to a hit of major resistance levels in August – $204, $217 and $240 (August high). September has not been volatile so far but these levels are good target levels for speculative buying or selling depending on the time frame in consideration.
Ethereum price prediction: Elliott wave theory
After completing a massive surge to $360, Ether price started a fast decline. The decline has corrected a bit beyond 61.8% Fibonacci retracement level and does not look corrective. There are fears that Bitcoin will continue to dominate even beyond the 70-71% attained in August. The corresponding dip on Bitcoin is clearly corrective and Bitcoin bulls are more confident to recover than the Alt bulls at least based on technical analysis.
In the last update, the chart above was used. The dip that followed the rally to $360 was evolving into an impulse wave. The 5th sub-wave might complete an ending diagonal pattern as the new chart below shows.
Ethereum has so much propensity to dip further. However, a minor bullish correction is close if the impulse wave, as shown above, complete as expected. A 3-wave bullish correction above $250 is very much likely.