It seems Ethereum is having some long-awaited bullish momentum after an important price break away. Will price break above the $420 top?. The following analysis is based on 9 November Ethereum Elliott wave analysis.
09 November, AtoZForex - In the past week, we have discussed about the possibility of this digital currency to break out upside significantly. This breakout is expected to lead to one thing - a new high. The last high was completed at $420 in the first half of the year. The second half of the year has seen price dropped to $200 and even $129. In all, there was a range in form of a triangle corrective pattern. Technically, the breakout was expected upside. The waiting period includes the triangle completion and the eventual breakout upside. Is that what is happening now as Ethereum rallied to $325?. In the last update, the following was expected.
Ethereum Elliott wave analysis, H2 (click to zoom)
Multibank ReviewT&Cs apply, 18+eToro Review74% of retail investor accounts lose moneyCapital.com Review76% of retail CFD accounts lose moneyThe chart above shows a lower time frame than we have been using. Wave (x) of E is exhibiting a triangle pattern. A break below $285 to $267 or slightly below could happen. Once price is held at wave E, a strong rally could then be expected t lead price above $310 and $345 as price heads to $600-$700.
The (x)-(y) legs of wave E did not complete before price broke upside. This might mean the wave E will be 'truncated'. Sometimes the wave E of a triangle pattern appears shallower than expected before the breakout. Seems that's what we are having now. The chart below shows what we have now.
9 November Ethereum Elliott wave analysis: first scenario
Ethereum Elliott wave analysis, H2 (click to zoom)
This scenario supports a true breakout. Price is not expected to return below $312. If there is a significant breakout (at least one full bar), there is high likelihood of price breaking above $350 and $397 top in a wild move to $420. If the breakout is not sustained and price drops below $312, the second scenario shown in the chart below is more likely to play out.
9 November Ethereum Elliott wave analysis: second scenario
Ethereum Elliott wave analysis, H2 (click to zoom)
This could lead to a deeper wave E to around $260 before the bullish breakout is expected to happen if price is sustained above the base line of the triangle. Stay tuned for more updates.
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