This week, Bitcoin and other altcoins have revived the crypto market, potentially boosting the Ethereum price and saving it from further collapse.
With ETH now moving away from the lower trendline of a huge long-term price pattern, the next possible target is the upper trendline of the same pattern. That target points to $10,000 per Ether, but how long can it take for the lofty price target to be reached?
Ethereum Rising Wedge aims to reach $10,000 or more
Throughout almost its entire history of price action, ETHUSD has filled a massive rising wedge pattern. Such patterns are predominantly bearish and break off about 60% of the time.
That leaves 40% of the time for these patterns to break upwards. Descriptions of the pattern show that wedges are notoriously prone to false breakouts and/or false collapses, where price violates one trendline, only to reverse and target another.
In the latter case, however, Ethereum is in the lead. This makes the next logical target the upper trendline, with at least some probability that it can still break out to the upside. The trendline is currently around $10,000 per ETH and rising with each passing day.
When ETHUSD will hit the upper trendline is still in question, but given the length of previous rallies that have lasted anywhere from six months to a year, the wait may not be as long as many expect.
Is $10,000 per ETH next? | ETHUSD on TradingView.com
Is this the beginning or end of ETH?
Have you ever wondered why a rising wedge pattern can break upward if it is a bearish pattern? In the Elliott Wave principle, wedges fall into the diagonal family of patterns. Diagonals can be leading or ending, and build on contraction.
A leading diagonal starts a sustained movement. The wedge-like appearance is misleading because traders expect the pattern to break, but instead breaks upward. An end diagonal, on the other hand, completes a sustained movement. In this case, the bearish breakdown expected from a rising wedge plays out.
Ethereum is potentially in a huge diagonal pattern, and not the rising wedge it seems. What we also don’t know is whether this is the beginning of a larger sustained move and a leading diagonal, or the end of the dominance of the largest altcoin, capped by a terminal diagonal.
Both patterns form into a five-wave pattern. Unlike standard Elliott Wave patterns, diagonals have unique rules. For example, wave 1 must be the longest, wave 4 must enter the area of wave 1, and wave 5 is the shortest of the waves. Since this is the last wave and possibly the shortest of them all, the touch of the upper trendline could be coming soon.