In the past week, the Ethereum (ETH) market has seen an impressive price increase, reaching a peak of $3,600. Notably, this second-largest cryptocurrency by market capitalization – along with many other altcoins – is showing strong upward momentum, evidenced by a 46% price increase over the past month. Amidst a euphoric market backdrop, Dutch market analyst Gert Van Lagen expressed support for the possibility of ETH continuing to rise, based on Elliott wave theory analysis.
ETH may end the bullish market cycle with a breakout
Elliott wave theory is a technical analysis method used to predict target price levels by identifying repeating patterns in price movements driven by investor sentiment. In a social media post on July 18, Van Lagen stated that this analytical framework signals ETH is entering the final stage of a bullish market cycle, with a target price of up to $10,000.
According to experts, the two-week trading chart of ETH shows that this coin is completing a five-wave cycle that began in 2022, with the fifth wave – also the final one – forming as an expanding diagonal pattern.
To clarify further, Elliott wave theory identifies a complete price cycle consisting of five waves, each wave including sub-waves a-b-c. As shown in the chart above, the cycle begins with wave 1 as the first bullish rally, followed by a strong corrective wave 2 occurring between 2022 and 2023. Wave 3 is characterized by explosive upward momentum, pushing ETH prices to new highs before entering a prolonged consolidation phase of wave 4 with a sideways corrective pattern.
Finally, there is wave 5 – which represents the current phase of the market – often seen as the final bullish phase in the cycle. After breaking through the upper resistance level of the range between waves 3 and 4, Gert Van Lagen stated that ETH is currently completing sub-wave a of wave 5, following the recent bullish rally.
Therefore, investors may expect a short corrective phase to retest the breakout price range, thus completing sub-wave b. After that, a strong rally – i.e., sub-wave c – could occur, potentially pushing ETH up to the $10,000 mark, based on the extended Elliott wave analysis applied to the bullish market cycle of Ethereum from 2019 to the present.
Overview of ETH price
As of now, ETH is trading at $3,752, up 5.5% in the last 24 hours and 25.4% in the last 7 days. However, daily trading volume has decreased by 12%, indicating that the current upward momentum may be weakening. Following the latest price surge, this altcoin remains the second-largest cryptocurrency, with a market capitalization of $452.9 billion, accounting for 11.6% of the total market share.
