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The recent correction of the second crypto by market cap appears to be nearing an end. Using Elliott Wave Theory as our guide, one can count the minimal waves in place to consider the correction from November 10 as completed.
If you recall, on November 18, Elliott Wave helped to forecast a price correction that would dip below $3,900 and possibly as low as $3,343. For the past few weeks, Ethereum has traded sideways to lower and eventually bottomed on December 3, 2021, at $3,470.
Source: TradingView
The pattern from November 10 to December 3 appears to be an a-b-c flat pattern to complete the third wave.
If this analysis is correct, then a flat in wave two is a powerful combination and suggests prices may jump higher in the near future.
Source: TradingView
Aside from the Elliott Wave count, Ethereum bounced back above the support trend line which has been in place since March 2020.
Mixed together, these symptoms suggest Ethereum priced in US dollars is embarking upon a wave to lead the second-largest cryptocurrency to new all-time highs.
Jeremy Wagner, CEWA-M, is a chart reading expert with a focus on Elliott Wave Theory. Jeremy earned the certified Elliott Wave analyst with high honors and was awarded the rare master’s designation (CEWA-M). You will find him teaching Elliott Wave and Fibonacci to traders through See The Waves.
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