2022 has been a rough year for crypto investors. The entire market lost roughly 70% from its all-time high and some digital currencies plunged even more. Bitcoin is still hovering around $20k mark following a crash from as high as $69k in November, 2021. Ethereum wasn’t spared, either. The second largest token by market cap fell from a record high of $4869 to as low as $880 in June, down 82% in just seven months.
On the other hand, those who where brave or lucky enough to buy near that bottom are now staring at a gain of over 50%. And that is after the recent drop from over $2030 to currently under $1400. Apparently, The Merge upgrade, which reduced the Ethereum Mainnet’s energy consumption by 99.95%, hasn’t led to any significant price gains yet. The Elliott Wave chart below, however, suggests that it might do so soon.
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The 4-hour chart reveals a complete 5-3 Elliott Wave cycle from the bottom at $880 in June, 2021. The positive phase of the cycle is a five-wave impulse up to $2032 in August, labeled 1-2-3-4-5. The five sub-waves of wave 3 are visible, as well. This pattern was naturally followed by a negative phase, consisting of a three-wave correction, marked A-B-C. A bullish reversal seems to be forming from the 61.8% Fibonacci level right now.
According to the theory, once a correction is over, the trend resumes in the direction of the impulsive sequence. If this count is correct, Ethereum is likely to head north again and eventually exceed to top of wave 5. This translates into initial bullish targets near $2100. In other words, a surge of 50% or more is likely to follow soon.