Ethereum slumps into the Bitcoin's bear pit on Friday with a 17% decline in about 4 hours.
17 May 2019 | AtoZ Markets - Ethereum has joined other cryptocurrencies as they fell into the bearish pit with the mighty Bitcoin. Bitcoin had a fast dip in the early hours of Friday. The flagship cryptocurrency quickly slumped by over 20% in an hour. When Bitcoin sneezes, the altcoins catch cold! All the major altcoins fell into the bear trap. The top 5 cryptos on coinmarketcap lost an average of 20% in the process. However, this was expected after such big surges seen in May. Prior to the current dip, Ethereum climbed by over 60% from $170 to nearly touch $280 this month. It currently trades at $238.
Is the Ethereum recovery over?
Since the spikes that started in April, the entire market has been upbeat. Prices are growing as more investors see the potentials of the crypto market. It does not look like the recovery is over. Ethereum still, could hit the 350-400 price level as identified in the last update shown by the chart below.
Ethereum price broke out of the technical bearish level this week as the chart above shows. We can now count an impulse wave from the $82 low with the first target at the $350-400 resistance zone. In terms of price pattern development from the December lows, Ethereum is far behind Litecoin, Bitcoin and Bitcoin Cash. Litecoin and Bitcoin are developing into clear impulse wave rallies from the respective lows and have completed their 3rd waves already. The chart below shows that Ethereum is far from completing the third wave after completing the 1st and 2nd waves at $167 and $102 respectively.
Ethereum price Elliott wave analysis
This is how ETHUSD bullish impulse wave could develop once the current dip is over. The 3rd sub-wave of wave 3 is on the way. The current dip is expected to be limited above $200. Any dip below would threaten this bullish bias. If ETH picks up again, the next target is $350-400 where wave 3 could end at an important resistance zone. A wave 4 dip followed by another rally is possible. As price develops, we will see if the forecast above would be made valid.