ETH/USD Monthly Review: Has the Dawn of a New Bullish Era Arrived?

In the near term, we might witness another significant pullback, potentially hitting a support level around 1291.97 USD. We anticipate the onset of a bullish phase for Ethereum, potentially pushing the primary wave 3 target to 54,226, meaning a bullish rally up to 9000 USD. This estimate is rather conservative and could be exceeded. If the bearish market trend is broken by upward movements, this would reinforce our bullish Elliott wave forecast.

In the short run, a pullback may persist, potentially lowering the support to around 1291.97 USD.

Our earlier alternate wave analysis, which assumed an ongoing bear market, has been dismissed due to a new peak above 2,030.19 USD on April 25. This fortifies our bullish wave prediction.

The Ethereum's entire price history can be seen on the monthly chart. The Elliott wave analysis begins at the October 2015 low.

Between October 2015 and December 2017, the upward wave perfectly matches an Elliott wave impulse, termed as cycle wave I. This impulse stretched for a bit over two years, aligning with the expected duration for a cycle degree wave, thus supporting this degree of labeling.

In cycle wave I, it's worth noting that the wave lengths on the chart are not Fibonacci ratios but serve as guides to Ethereum's anticipated behavior. Ethereum's past price history showcases extended third and fifth waves, which often surpass third waves, with a few exceptions.

Also, noticeable are the depths of primary wave 2 and the deepest segment of primary wave 4 within cycle wave I. Ethereum has experienced substantial corrections, though not as severe as some other cryptocurrencies.

In cycle wave III, primary wave 2 should not descend beyond the start of primary wave 1 below 82.05. If the last low marks the end of primary wave 2 within cycle wave III, it would be 0.83 of primary wave 1, which is a standard depth.

Cycle wave III can only subdivide into an impulse. It needs to climb sufficiently above the end of cycle wave I to provide space for cycle wave IV to develop and stay above cycle wave I price range.