close icon

Ethereum ‘s Collapse Carries an Elliott Wave Message

What will BTCUSD bring next week? That is the subject of discussion in our next premium analysis due out late Sunday!

Ethereum, still the second largest cryptocurrency with a market cap of ~$39B, was enjoying a strong 2020. ETHUSD was up 282% YTD until the start of September. The last few days, however, seem to have brought the bulls’ winning streak to its end.

The price of Ethereum collapsed from as high as $489 to less than $310, erasing over 36% of market value in just a week. As of this writing, ETHUSD is changing hands at roughly $350. The only question is: is this a buying opportunity or the start of a larger selloff?

Price of Ethereum Draws an Impulse pattern

To find out, we decided to take a look at the recent plunge through the prism of Elliott Wave analysis. The hourly chart above reveals it can be seen as a five-wave impulse pattern, labeled 1-2-3-4-5. The five sub-waves of wave 3 are also visible and marked i-ii-iii-iv-v.

According to the theory, impulses show the direction of the larger trend. In other words, once the current corrective recovery ended, traders should expect more weakness to follow. The exact depth of the a-b-c retracement is unknown, but targets below $310 lie ahead when Ethereum bears eventually return. If this count is correct, the rest of 2020 is going to be nothing like its first eight months.

What will BTCUSD bring next week? That is the subject of discussion in our next premium analysis due out late Sunday!



Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

Bitcoin Bears Needed a Catalyst. Tesla Obliged

Tesla CEO Elon Musk announced the company would stop accepting Bitcoin as payment due to environmental concerns. The EV-maker’s Bitcoin stunt lasted for just three months, apparently the time it took for its CEO to realize how inefficient and energy-consuming BTC mining is, something we wrote about in March. The price of Bitcoin, of course,…

Read More »

Harmony Coin Draws Bullish Elliott Wave Setup

Bitcoin, Ethereum, Dogecoin, you name it. There are already thousands of cryptocurrencies in existence, most of which serving no other than speculative purpose. The fact that even the big guys on Wall Street can’t resist the urge to dip their toes in the space only makes retail investors more confident. We remain skeptical. Today, however,…

Read More »

ETHUSD Wave Pattern Can Disappoint the Bulls Soon

For the crypto space, it is 2017 all over again, except bigger. The two biggest cryptocurrencies – Bitcoin and Ethereum – exceeded their previous records and then some. ETHUSD, in particular, is now approaching $2600 and is not very far from doubling its January 2018 peak level. Furthermore, ETHUSD is up 32-fold from its December…

Read More »

Bitcoin Can Never Be a Global Currency. Here’s Why

Bitcoin’s relentless rise in the past year forced even some its most vocal critics to throw in the towel. Kevin O’Leary, for example, used to call Bitcoin “garbage”, but recently said that he has 3% of his portfolio in BTC and ETH. And indeed, many, us included, have been calling Bitcoin a bubble for years,…

Read More »

Bitcoin: When Prediction is Hard, You Can Still Prepare

Bitcoin bulls are in retreat, at last. After the cryptocurrency’s meteoric surge to $42 000 at the start of 2021, the price dipped below $29 000 earlier today. And since BTC is one of the most-widely followed assets these days, experts were quick to offer their views. J.P. Morgan analysts stated that $40k is a…

Read More »

Ahead of Bitcoin ‘s $3k+ Fourth Wave Correction

Thursday was a disappointing day for Bitcoin bulls. The largest cryptocurrency by market cap fell by over $2000 to an intraday low of $16 218 yesterday. Given Wednesday’s high of $19 490, BTCUSD lost over $3200 per coin in just two days. Instead of the new all-time high many expected, traders had to swallow a…

Read More »

Ahead of Bitcoin ‘s 2017-Style Surge with Elliott Wave

Bitcoin is surging again. The cryptocurrency is approaching $16k in a rally reminiscent of the late-2017. Near-zero interest rates make speculative instruments such as Bitcoin very appealing. The BTC-as-an-inflation-hedge narrative is also helping the bulls right now with the Fed and ECB pumping cash into the financial system. But Bitcoin is far from a true…

Read More »

More analyses