Ethereum (ETH) Corrects After Reaching Yearly High – Will $1,800

٢٧ يوليو ٢٠٢٣

Ethereum (ETH) has experienced a corrective phase following its new yearly high on July 14.

While the price action confirms the correction, the wave count suggests that ETH will likely bottom soon, paving the way for it to resume the previous upward trend.

Daily RSI Bearish Signal
The daily Relative Strength Index (RSI) is bearish, corroborating the Ethereum price drop. The RSI is a key indicator used by traders to assess market conditions. An RSI above 50 and trending upward indicates a positive sentiment for bullish investors, while a value below 50 suggests the opposite.

At present, the RSI is falling and below 50, signifying a bearish trend.

ETH Price Prediction: How Long Will the Correction Last?

Based on the Elliott Wave count, Ethereum's price has completed a five-wave increase and is currently in an A-B-C corrective structure. This indicates that the price is currently in the C wave, which will ultimately conclude the correction. The Elliott Wave theory helps analysts understand the trend's direction by studying recurring long-term price patterns and investor psychology.

Applying a 1:1.61 ratio to waves A:C suggests a potential low near $1,780, which aligns with the 0.618 Fibonacci retracement support level. According to the Fibonacci retracement theory, after a significant price change in one direction, the price is expected to partially return to a previous level before continuing in the same direction.

Considering this confluence, it is likely that Ethereum's price correction will find support around the $1,780 level before resuming its upward movement toward $2,000.

Looking Ahead: Despite the optimistic long-term ETH price prediction, a decline below the June 10 low of $1,648 would indicate that the current decrease is not merely a correction but rather a continuation of the bearish trend. In such a scenario, the price could potentially fall to $1,450.