Will the Ethereum price truncate or drop lower?
- ETH price printed a steep Wave three pattern in May.
- Ethereum price could be printing an ending diagonal wave five.
- Invalidation of the downtrend is a breach at $1875.
Ethereum price could be printing the final lows. An early confirmation signal could yield profitable returns.
Ethereum price could be bottoming out
Ethereum price could be in the final stages of the downtrend. An alternative count probably unfavorable to most traders has the ETH price coiling as a wave five ending diagonal pattern. Ending diagonal patterns usually occur after steep wave threes, which is what Ethereum experienced throughout the month of May.
Ethereum price currently trades at $1791. The Volume Profile and Relative Strength Index present double scenario style patterns considered unreliable in this current forecast. The only way to confirm if the ETH price will double bottom will be, in retrospect, a reaction to the $1875 price level. If the bottom is truly in, the ETH price will catapult once the level is breached.
ETH/USDT 3-Hour Chart
Invalidation of the downtrend is at $1875. Once the level is breached, a safety stop can be placed at this year's lows, which currently is $1699. If the bulls breach the invalidation level, a rally towards $3,000 could result in a 70% increase from the current Ethereum price.
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
