There has been a lot of headlines lately as the world’s new favorite cryptocurrency Ethereum (ETHUSD) soared +5,000% in value before the price dropped and it’s currently still up over 3,500%. Ethereum was only developed two years ago while bitcoin’s been around for almost eight years , many investors are expecting the ether token to take over in the coming months as it’s positioned to surpass bitcoin as the world’s largest cryptocurrency by market cap.
We discussed in our previous article how ETHUSD was leading the way for BTCUSD and we expected another leg higher to take place toward 315 – 365 which was achieved then surpassed as Ethereum managed to break the $400 handle before retracing lower. Let’s take a look at the 4H chart using Elliott Wave Theory to determine the next move.
ETHUSD 4H 07/01/2017
Ethereum did 7 swings sequence to end a double three correction around equal legs $228 – $193, then it started the bounce higher which allowed traders to protect their Long positions. So currently as the as the price stays above $203.9 level then ETHUSD should remain supported and extend to the upside looking for new highs or at least finish 3 waves bounce around $350 – $380.
ETHUSD Daily 07/01/2017
The pullback from 06/12 peak ended up by correcting the entire cycle from the lows, it reached the 50% of the rally around $205 and bounced from there. Consequently, the move higher has the potential to reach equal legs area $615 – $712 and even extend toward $870 it it turns out to be the 3rd wave of an impulsive move.
Ethereum is currently the best performing currency for 2017 and it still has the potential for further gains in the second half of the year if the price manage to break above 06/12 peak. The move is expected to happen when Bitcoin starts it’s next leg higher which will drive more power to the rest of the digital market.