Ethereum Price Prediction: Will ETH Surpass $2500?
A rising wedge pattern governs the current recovery trend. A post-correction rally could set the ETH price for an 18% surge. The intraday trading volume in Ether is $10.3 Billion, indicating a 66% gain.
Source- Tradingview
The Elliott Wave Theory is a method used in technical analysis to predict future price movements by identifying patterns in market cycles.
The ongoing recovery of the Ethereum coin aligns neatly with the Elliott Wave Theory’s framework. The first wave saw the ETH price peak at $1,656, followed by a second wave correction to $1,543. With the broader market’s recovery, the altcoin surged in a third wave and reached a 7-month high at $2,137. Furthermore, the ETH price experienced a 4th wave correction in the third week of November, marked by a downward-sloping resistance trendline. This pullback assisted buyers in recuperating the exhausted bullish momentum for the next leap.
On November 22nd, while major altcoins attempted to recover from recent sell-offs, the Ethereum price notably broke out from the overhead trendline, potentially signaling the initiation of a 5th wave impulse.
Using the Fibonacci extension tool to project the 5th wave, it could potentially reach around 0.618 or $1.618 times (wave 1 + wave 3) against the wave 4 correction, implying a potential target of $2,380 or $2900 for Ethereum’s price.
Is ETH Poised for Further Correction?
Source- Tradingview
With an intraday 2% loss, the Ether price currently stands at $2,070. This dip raises questions about whether the price has genuinely entered the fifth wave. However, should the aforementioned bullish thesis hold true, a climb to $2,800 could spark a bullish breakout from a long-standing rising wedge pattern. Such a breakout might indicate a significant trend reversal, potentially strengthening the recovery outlook and aiming for an extended rally toward $3,400.
- Relative Strength Index: The formation of a higher low in the Ethereum price despite a lower low drop in RSI suggests a reverse bullish divergence in this momentum indicator. This accentuates sellers’ attempts but highlights the potential neglect of their influence.
- Exponential Moving Average: The slopes of the 20 and 50-day EMA might provide initial support during intermittent pullbacks in the price.
Hot Take: Ethereum’s Potential for Growth
Ethereum has shown promising signs of recovery following a pullback in the crypto market. With its current upward trend and potential for further growth, there is speculation that Ethereum could surpass $2500. Technical analysis using the Elliott Wave Theory suggests that Ethereum may be entering its 5th wave impulse, which could lead to a surge in price. Additionally, indicators such as the Relative Strength Index and Exponential Moving Average indicate positive momentum and support for Ethereum’s price. While there may be intermittent pullbacks, the overall outlook for Ethereum remains bullish, with potential targets of $2,380 or even $2900. Investors and traders should closely monitor Ethereum’s price movements for potential opportunities.
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