How High Can Ethereum Rise Before Its Next Most Significant Pullback?

Complete the smaller 4y and 5y waves

In the past month, see here; Our primary expectation was for Ethereum (ETH) to move higher as Elliott Wave Theory (EWP) continued to identify five waves bullish and three waves bearish from the November 2022 low. Last week we found that “A break above $1350 should be considered bullish if the December lows hold“And”The first order is to break above the December 2022 high ($1350) in an impulse (five waves) fashion, ideally targeting the November 2022 high around $1675.

Fast forward, and ETH bulls broke above the $1,350 resistance on January 11, sending ETH to $1,606. As such, the expected rally is developing to the next resistance level at $1,671 on the November 2022 high. See Figure 1 below. ETH should now be (in blue) nano W-iii from (orange) micro W-3 from (grey) min W-iii from (green) secondary W-1; Instead a red toilet.

Lots of a mouthful, but it simply means that there is still upside potential left with an ideal target area between $1950 and $2250, depending on the exact Fibonacci extension of each wave. Meanwhile, our trading bot warned our premium members not to buy ETH on January 3rd, see hereAnd it continues to hold, supporting the view of more upside.

Figure 1. Ethereum daily chart with detailed EWP count and technical indicators.

The bullish breakout continues, but the $1350 level must hold

Given the break above $1,350, we can now move the initial forecast invalidation level from $1,074 to this price level. However, the strength of the current rally (RSI14 at 85, MACD at 85, Money Flow Index at 100, see technical indicators in Figure 1) is quite typical for 3Research and development from 3Research and development wave and does not support the idea that ETH will break below anytime soon. Although a slight pullback should begin soon to mitigate some of these extreme readings, it should be considered a slight 4y A wave is at this point, hence the “low risk – buy the dip” opportunity.

Thus, the bulls are now out of the woods. They should be able to target $1950-2250 with an ideal target of $2100 +/- $100. Once we get there, we should expect a more significant decline, which should hold above $1350. If it doesn’t, then we should expect ETH to enter triple-digit territory one last time. But for now, our primary focus is the sub-$2,000.

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