Ethereum Price Prediction: Will It Reach $900 or $9000?
Ethereum (ETHUSD), the second-largest cryptocurrency, experienced a low point on August 5 at $2121 before embarking on a rallying journey that continued until the end of the month, settling around $2480 presently. While the rally may not be described as spectacular, there are signs of positivity emerging. Utilizing the Elliott Wave Principle (EWP) as our primary analytical tool, the price action, though somewhat erratic, offers room for interpretation. The recent analysis indicated a potential upward trend, stating, “The decline from the March high into last Monday’s low still counts best as three waves: W-X-Y.”
The low point observed on August 5 has remained intact, allowing for the development of a possible wave-i, ii scenario as illustrated. The analysis suggests that the preceding leading diagonal and irregular expanded flat formations are part of this setup. Notably, nearly 76.40% of the anticipated W-i rally retracement occurred at the recent low, a common characteristic of a 2nd wave. Furthermore, technical indicators like RSI14, MF14, and MACD are showing positive movements. Despite these encouraging signs, ETHUSD continues to trade below key indicators like the Ichimoku Cloud, 20-day simple moving average (20d SMA), and the declining 50d and 200d SMA, maintaining a predominantly Bearish trend on the chart. Reversing this trend would necessitate surpassing the crucial resistance level at $2813.
The analysis from the previous update also highlighted the challenge in distinguishing between the “low in” scenario and the possibility of another downward movement. The third warning level for the Bulls is currently holding, but a failure at this point could lead to revisiting the low 2000s range. The chart indicates warning levels for the Bears, signaling price points where the likelihood of a lower low diminishes.
In a scenario where the August rally represents a 4th wave bounce, a final 5th wave is anticipated, potentially reaching around $2050. The chart also outlines warning levels for the Bears, indicating price thresholds that would make a further decline less probable. Despite the less-than-ideal price action, clear price-based parameters have emerged to guide predictions on potential price movements, whether towards lower lows or sustained stability at recent levels.
In conclusion, while the price action may not be optimal, the establishment of clear price parameters provides valuable insights into the potential future direction of Ethereum’s value.
