**Ethereum Elliott Wave Update for April 18, 2024**
Ethereum, the second-largest cryptocurrency by market capitalization, has been navigating a corrective phase recently. Let’s delve into the current Elliott Wave structure to gain insights into Ethereum’s potential price movements:
**Ethereum’s Recent Correction:**
Over the past month, Ethereum has been undergoing a Wave 4 correction in the form of a zigzag pattern. This corrective wave suggests that after a prolonged bullish phase, Ethereum is taking a breather, reorganizing its price structure before potentially resuming its upward trajectory.
**Potential Support and Reversal Points:**
1. **ABC Zigzag Correction:**
Ethereum’s correction seems to be nearing its completion. For the correction to be an ABC Zigzag, Ethereum might need to test the 2800-2850 range. This range represents an A equals C target, which is a common retracement level in corrective wave structures. A bounce from this level would signal a potential reversal and the end of the corrective phase.
2. **Wave 4 Correction:**
If Ethereum’s correction is classified as a Wave 4, and it manages to hold the 2800-2850 support level, breaking above 3700 would confirm the onset of a 5th wave. This 5th wave could potentially target the 5000 range, indicating a strong bullish sentiment and a resumption of the primary uptrend.
**Key Levels to Watch:**
– **Support Level:** Ethereum needs to hold the 2800-2850 range to validate the ABC Zigzag correction and set the stage for a potential reversal.
– **Resistance Level:** A break above 3700 would signify the beginning of a 5th wave, targeting the 5000 range.
**Conclusion:**
Ethereum’s Elliott Wave structure suggests that the cryptocurrency is approaching a critical juncture. The correction appears to be nearing its end, with key support levels identified around 2800-2850. A successful bounce from this support, followed by a break above 3700, would validate a bullish 5th wave targeting 5000. As the market evolves, it’s crucial for traders and investors to monitor these key levels and adjust their strategies accordingly to capitalize on potential price movements.
