- 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.