Ethereum ETH Elliott wave analysis 19 Jun 2018
Ethereum returned back to $500 and above in another corrective rally. What is the next thing to expect? The following 19-20 June Ethereum price prediction looks at ETHUSD technical forecast based on Elliott wave theory.
Last week, Ethereum dropped to $450. This week so far, we have seen little recovery in prices of the major Crypto currencies. Ethereum now trades above $500. But the rally looks corrective. When a trend is established and price makes a correction, it's expected that price continues in the direction of the trend. Elliott wave theory is able to differentiate between a trend and a correction by identifying their characteristic structural build-up and putting them into different groups. It further named the corrective and trend (motive) wave patterns. This has proved to be useful for all types of market and in all time frames. In the past updates, we identified that from the all-time-high, ETHUSD is emerging into a triple zigzag pattern. Litecoin and Bitcoin are forming a double zigzag pattern. The corrections are in the final stages. In the last update, the chart below was used to analyze ETHUSD.
The chart above shows how the correction could end. Wave (z) is expected to be a zigzag pattern. Wave a of (z) completed at $450 below wave (y) low at $550 we discussed in the last update. If price moves as expected, we would see it down to $400 or below in the coming days with another 5-wave dip - wave c of (z). This forecast will be invalid if price breaks above the channel line (above $550).
Price is at the verge of completing wave (z). Wave a of (z) completed with an impulse wave at $450. The update above shows wave b of (z) was between $530 and $450. We expected a break below to $375. What has happened since then? Wave b of (z) is forming a much clearer pattern. The chart below shows.
Wave b of (z) is completing a double zigzag pattern formed within a channel line just like we have in Ripple and Bitcoin. Price could rally to the top of the channel at $575. A breakout below the channel would be the needed bearish confirmation. If this happen, we should expect price down to $375 in the coming days. A strong rally above $575 would invalidate this forecast and would probably lead to higher prices toward $625. Stay tuned for the next update.
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