Ethereum's Impulse Run May Be Temporary Correction Ahead
Ethereum has been making strong gains, rising over 30% and breaking above the 2200 level. According to Elliott Wave analysis, this surge appears to be an impulse, with a recent pullback in wave 'iv' followed by a jump into wave 'v'. However, this spike up may only be temporary, as it's now entering a new higher-degree wave 4 correction. This correction could potentially find support at the 2400-2200 zone before continuing upward into wave 5. Bulls looking for wave 5 to unfold would need to see Ethereum break above the 2615 level.
The Elliott Wave five-wave bullish impulse typically consists of waves 1, 2, 3, 4, and 5 in the direction of the larger trend. Waves 1, 3, and 5 are motive waves, while waves 2 and 4 are corrective pullbacks, with wave 3 often being the strongest leg.