Here, we use the Grayscale Ethereum Trust (ETHE) Exchange-Traded Fund (ETF) to illustrate what that would look like. In this case, we anticipate the red W-i to peak at around $25 for ETHE and approximately $ 3,000 for ETH. From there, we can still expect a deeper red W-ii to ideally be around $ 2,250 +/- $ 75 for Ethereum and $ 17.50 +/- $ 2.50 for ETHE, before the red W-iii kicks in. However, the bears will need to push the price back below last Friday’s low (ETHE $20.60, ETH $2385) to initiate this alternative. Therefore, we have, thanks to the EW, an excellent stop level, i.e., risk/reward, to work with if desired.
Regardless, both paths lead to Rome, so to speak, and we must not lose sight of what truly matters: the third wave to ~$5000+ for ETH. We always tell our premium Newsletter members to see the forest for the trees, because “big gains come from big time frames,” as the short term is always more variable and uncertain than the long term.
We present these two options not to confuse, but to clarify our expectations. We’re simply thinking ahead, and neither price movement will catch us off guard, allowing us to be prepared. While we update our analysis and insights daily for our Premium Newsletter members, we’ll check in with you again here in a few weeks.