{"id":21909,"date":"2024-06-20T07:30:09","date_gmt":"2024-06-20T11:30:09","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=21909"},"modified":"2024-06-20T07:30:09","modified_gmt":"2024-06-20T11:30:09","slug":"setting-a-new-target-on-ethereum","status":"publish","type":"post","link":"https:\/\/stage.jeffclarktrader.com\/market-minute\/setting-a-new-target-on-ethereum\/","title":{"rendered":"Setting a New Target on Ethereum"},"content":{"rendered":"

On June 3, we took a closer look at bitcoin<\/a>.<\/p>\n

This time, we’ll be analyzing Ethereum. Ethereum is the second-largest cryptocurrency network.<\/p>\n

With a market cap of nearly $470 billion, only bitcoin is bigger.<\/p>\n

And just like with bitcoin, we’ll be analyzing Ethereum using the Elliott Wave Principle (EWP).<\/p>\n

EWP is a theory developed by American accountant Ralph Nelson Elliott. Mr. Elliott was a stock market analyst active in the 1930s.<\/p>\n

Elliott discovered that the market seemed to trend and reverse in recognizable and predictable patterns.<\/p>\n

Several analysts have added to Elliott’s original body of work over the years, including myself. Today, his theory applies to many different markets, including cryptocurrencies.<\/p>\n

Here’s how it all works…<\/p>\n

Tracking Ethereum Effectively<\/strong><\/h2>\n

According to the EWP, markets trend and reverse in a predictable manner. You can follow along on this chart…<\/p>\n

The trending phase of the market has 5 “waves.” Waves 1, 3, and 5, push the market in the direction of the larger trend.<\/p>\n

Waves 2 and 4, on the other hand, see the market pull back against the direction of the larger trend.<\/p>\n

Once we have a completed 5-wave cycle, we’ll see a counter-trend pullback in 3 waves. This pattern repeats itself over and over and over again.<\/p>\n

We use numbers (1, 2, 3, 4, 5) to label the trending waves. And we use letters (A, B, C) to label the countertrend components once a 5-wave cycle is complete.<\/p>\n

With that in mind, let’s look at where Ethereum sits within its current wave cycle.<\/p>\n

<\/p>\n

\"Image\"<\/p>\n

\n

Click to expand image<\/a><\/p>\n

As you can see, Ethereum is very similar to bitcoin<\/a>.<\/p>\n

Just like bitcoin, Ethereum has completed 4 waves, and we have one more wave higher to go before a larger pullback is likely to take place.<\/p>\n

And just like we did with bitcoin, we’re going to apply the same targeting technique to figure out where this final wave 5 in Ethereum is likely to go.<\/p>\n

To do so, we need to take the measurements of waves 1 and 4 first.<\/p>\n

That’s because wave 5 tends to be approximately equal in length to wave 1. We can start measuring the projected length of wave 5 from the price point where wave 4 ends.<\/p>\n

In the case of Ethereum, wave 1 nearly saw the crypto double in value with a move higher of 93%.<\/p>\n

This means from the wave 4 low of $2,880, we should look for wave 5 to stage approximately another 93% advance.<\/p>\n

That gives us a target in Ethereum of around $5,550.<\/p>\n

<\/p>\n\n\n\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/p>\n

Always Manage Your Risk With Cryptos<\/strong><\/h2>\n

This is the part where I say just because we have a great target to aim for, it doesn’t mean we should blindly hope that Ethereum gets there.<\/p>\n

Cryptocurrencies are notorious for being volatile. It’s possible we fall short of the target. At the same time, it’s also possible we exceed the target and go even higher.<\/p>\n

That’s why the money in trading is always made through strong risk management.<\/p>\n

One of the best things traders can implement is a trailing stop loss system. A trailing stop loss simultaneously locks in gains while limiting your downside risk.<\/p>\n

And with a market as volatile as Ethereum, it’s very wise to make use of a trailing stop as if prices continue trading higher.<\/p>\n

<\/p>\n

Happy trading,<\/p>\n

\"Signature\"<\/p>\n

Imre Gams
Analyst, Market Minute<\/em><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Using this principle can help you set targets on one of the most volatile assets\u2026<\/p>\n","protected":false},"author":64,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[76],"newsletter-type":[],"ticker":[],"class_list":["post-21909","post","type-post","status-publish","format-standard","hentry","category-uncategorized","publication-market-minute","person-imre-gams"],"acf":[],"ai_tts_audio_outdated":false,"ai_tts_legacy_post":false,"_links":{"self":[{"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21909","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=21909"}],"version-history":[{"count":0,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21909\/revisions"}],"wp:attachment":[{"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=21909"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=21909"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=21909"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=21909"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=21909"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=21909"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=21909"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}