Ethereum holds bullish Elliott Wave structure as it targets $2,575-$2,755

Since our July 2 update, we have been Bullish on Ethereum (ETHUSD) using the Elliott Wave Principle (EWP) and Technical Analysis (TA). In our last update, we showed that we were tracking a five-wave advance higher, and that therefore Ethereum was

“most likely in a short-term corrective [2^nd wave] pullback to ideally $1,700+/-25 from where the next rally to approximately $2,450+/-50 can start.”

Fast-forward four weeks and ETH bottomed on August 1 at $1,820 and is now trading at around $2,420 for a 3rd-of-a-3rd wave rally. See Figure 1 below.

Figure 1: short-term Elliott Wave count for ETH with several technical indicators

Thus, our previous calls for higher prices were correct. We continue to track the potential for five (gray) waves (i, ii, iii, iv, v) higher within the green W-3, ideally around $2,575-2755, contingent on ETH staying above at least $2,145, which is our 3rd warning level for the Bulls. Below that level, there is a >60% chance the current uptrend is over.

Given the ongoing bullish price action and as stated previously, we continue to view the larger (black) 4^th wave as complete. It morphed into a complex, multi-year bull flag pattern, holding the lower trend line elegantly. Ethereum continues to move impulsively, so we continue to track a potential five-wave advance from the July 1 low. If it materializes, we can be certain that an important low has been struck and that at least $6250K will be the next major target for the black W-5, of the blue W-V etc. See Figure 2 below.

Figure 2: Long-term Elliott Wave count for Ethereum