Ethereum, despite moments of doubt, is still firmly within its bull market structure. While Bitcoin has consistently outperformed Ethereum throughout this cycle, we believe Ethereum has the potential to massively outperform Bitcoin in the coming weeks and months.
Ethereum is trading within a rising channel, and each upward movement follows a three-wave structure. Based on the current wave analysis, we believe:
- Wave A has been completed in recent weeks.
- Wave B has been or is still being built.
- Wave C is on the horizon, poised to deliver significant upside momentum.
Analysis of Wave B
Scenario 1: Wave B is Complete (Weak B-Wave)
- If Wave B has already concluded, this would imply that the corrective structure was relatively shallow.
- Ethereum could then immediately begin its ascent into Wave C.
Scenario 2: Wave B is Still Unfolding
- Subwave A of Wave B: This downward movement may already have been completed.
- Subwave B of Wave B: A relief rally could be underway, pushing Ethereum higher in the short term.
- Subwave C of Wave B: A deeper corrective leg may follow, taking Ethereum to lower levels before the larger Wave C begins.
Regardless of whether Wave B is fully developed or not, Ethereum’s current price offers an attractive risk-to-reward ratio, making it a strong candidate for large portfolio allocation.
Key Levels
- Support Zones: Critical support levels lie at:
- $3,157 (0.382 Fibonacci)
- $2,911 (0.5 Fibonacci)
- $2,685 (0.618 Fibonacci)
- Upside Targets: The Wave C target could align with the upper boundary of the rising channel, potentially testing all-time highs or beyond.
Strategic Insights
- Ethereum’s current structure within the rising channel and its wave setup indicate a high potential for significant upward moves in the near term.
- The risk-to-reward dynamics at current levels strongly favor accumulation, making Ethereum a core position in our portfolio.
As Ethereum begins Wave C, we anticipate it will outpace Bitcoin in both percentage gains and market sentiment, further reinforcing our conviction in its role as a key market leader in this bull cycle.