Will Ethereum (ETH) Take the $2000 Barrier in Honor of Its 8th Anniversary
Date: 2023-08-01 Author: Karina Ziganova Categories: BLOCKCHAIN
Ethereum (ETH) hit a new yearly high on July 14 and has been declining ever since. The price bounced off the important support level of Fibo, but has not yet confirmed the direction of the trend
Wave analysis suggests that ETH has either already bottomed out or will do so soon. Short-term price dynamics confirm this possibility, showing an increasing low on the chart.
Has Ethereum completed the correction?
The wave analysis of the 6-hour timeframe offers two options for further price movement of the Ethereum token, which turned 8 years old on July 30.
According to the Elliott Wave Theory, ETH has completed the formation of a five-wave bullish structure (white) and is now undergoing a correction in the form of an A-B-C structure. Currently, the price seems to be in wave C, which will complete the correction.
However, it is not yet clear whether the correction has already been completed or whether it will be followed by another low.
According to the bullish scenario, the correction is complete. This is confirmed by the fact that ETH bounced off the 0.5 Fibo support level of the retracement at $1825.
Fibonacci levels are traditionally considered the most likely springboards for stopping and reversing the price after significant progress in any one direction. Accordingly, they can determine the limiting levels of the price movement.
However, the ratio of A:C waves as 1:1.61 indicates a potential low around $1780. This also coincides with the Fibonacci support level of the 0.618 retracement (white).
A fall from current levels to the support of $1780 would mean a price decline of almost 5%. However, if ETH closes below this support area, then it could fall to June lows at $1620, which would mean a drawdown of 12% from current levels.
ETH Forecast: Rising Low Is a Good Sign
The results of technical analysis of the shorter-term 30-minute timeframe outline a predominantly bullish picture. The main reason for this is the price rebound from the 0.618 Fibo support level (green icon). It is Fibo 0.618 that often plays the role of the bottom, if the price decline was only a correction.
At the same time, the rebound formed a long lower wick, which is considered a sign of pressure from buyers. In addition, an increasing low appeared on the chart (relative to the price on July 24).
All of these are considered signs of a bullish trend and support the likelihood that the correction has already been completed. In this case, the most likely forecast is for ETH to rise to July highs around $2000 (+7% from current levels).
Despite the bullish outlook, a fall in ETH below the July 30 low at $1848 (red line) would mean that the correction is not yet complete. In this case, the price may drop to the previously allocated support of $1780.
