Ethereum

Ethereum High-Time-Frame Analysis

Ethereum (ETH) has been navigating a significant market cycle, marked by both deep corrections and promising recoveries. On June 22, 2022, ETH experienced a significant bear market low, setting the stage for a strong recovery. This initiated the first impulsive wave (Wave 1), which propelled Ethereum’s price to a high of $4,113. Following this peak, Ethereum entered a corrective phase (Wave 2), which retraced a substantial portion of the gains from Wave 1.

Wave 2: The Corrective Phase

Wave 2 is traditionally aggressive, often retracing more than 50% of Wave 1’s upward move, which aligns with the typical Elliott Wave theory correction patterns. The attached chart shows Ethereum retracing to various Fibonacci levels, with 0.618 ($2,864) being a critical zone. Ethereum is currently oscillating around this level, and the final leg of this correction ( (c)) seems to be approaching completion. The key observation is that this corrective phase may still see another low before it conclusively ends, though that remains to be seen. For a low-time-frame analysis, please check the posts below this one.

Outlook: Wave 3

Once this corrective phase concludes, Ethereum is expected to begin Wave 3, the most significant and powerful wave in an Elliott Wave cycle. The chart illustrates that Wave 3 will target a minimum of $6,103, potentially even higher, as this wave is expected to be the longest and most impulsive in nature. Given that Ethereum is projected to enter price discovery once it breaches its all-time high, there is room for more significant upside, possibly extending to around $7,185 or beyond.

Technical Chart Breakdown

• Wave 1 extended up to $4,113, completing the first impulsive leg.
• Wave 2 is in the final stages, testing key Fibonacci retracement levels.
• The projected Wave 3 should take Ethereum to at least $6,103, with the possibility of reaching $7,185, as shown in the box in the chart.

Conclusion

In summary, Ethereum is at a pivotal point in its high-time-frame structure. After a significant Wave 1 impulsive rally and the ongoing Wave 2 correction, we are now poised at the brink of Wave 3, which has historically been the most aggressive wave in the cycle. The chart projects a minimum target of $6,103 for Wave 3, with the potential for higher gains as Ethereum enters price discovery. As always, market participants should be cautious, especially given the inherent volatility of the cryptocurrency market.