close icon

Ethereum Ready for a Pullback?

Less than two years since its launch on July 30, 2015, ethereum has already become the second largest cryptocurrency in the world, with a market capitalization of roughly $4.5 billion, trailing only to bitcoin’s $20 billion. We are definitely not the people to ask how exactly the blockchain technology works, but ethereum’s decentralized nature means its price is governed by people’s optimism and pessimism about it. That is why we believe the Elliott Wave Principle can help us find out at what stage the cycle of emotions currently is, in order to predict the next phase. ETHUSD’s logarithmic price chart below will help us with the task.
ethereum
The chart shows ethereum’s entire uptrend from December, 2016. According to the theory, the direction of the trend can be confirmed by recognizing a five-wave pattern, called an impulse. So far, ethereum’s rally is not an impulsive, because its fifth wave is still missing. Nevertheless, we think it is just a matter of time before it completes the pattern and confirms the virtual currency is in a long-term bull market. On the other hand, every impulse is followed by a three-wave correction in the other direction, before the trend resumes. In other words, instead of joining the bulls now, the Wave Principle suggests we should wait for a noteworthy pullback in wave (2), which might drag the price of ethereum down to the $30 area, thus significantly reducing the risk and maximizing the growth potential. Until then, staying aside is preferable.



Stay informed with our newsletter

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

Privacy policy
You may also like:

Should You Buy Solana? What the Charts Say

Solana just cracked the top ten biggest cryptocurrencies with a market cap of just under $21 billion. The rumored Ethereum rival is up 235% in the past month alone after a steep ascent from $22.11 to as high as $75 so far today. Does this mean it is time to join the bulls and invest…

Read More »

Ahead of the Bitcoin Curve Since the Tesla Let-Down

The last time we wrote a free article about Bitcoin was on May 13th. The price of the biggest cryptocurrency had just plunged from over $57k to sub-$46k after Tesla CEO Elon Musk tweeted the company will no longer accept it as payment. As we showed in that article, the Tesla disappointment was just a…

Read More »

ETHUSD ‘s Bearish Elliott Wave Cycle Almost Complete

The time between May 12th and May 23rd is a period ETHUSD bulls would want to forget. The second largest cryptocurrency fell from an all-time high of $4380 to as low as $1730. While some might consider crypto to be gold 2.0, crashes like that one reveal that the space is still a wild west…

Read More »

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 »

More analyses