Ethereum is recovering and breaking out of the previous triangle, as discussed before, but this move is now much more powerful than initially expected. We have seen a sharp move over the last few days, with Ethereum gaining more than 30% and breaking well above the 2200 level, which looks impulsive. After the recent projected subwave “iv” pullback, we saw a strong jump into the projected subwave “v” of 5, or alternatively wave 3.
However, the move currently looks more like a spike higher, so we should now watch for a new higher-degree wave 4 correction that could retest the 2400–2200 support zone before a continuation higher into wave 5. Alternatively, wave 5 could already be in place if we see a stronger and more impulsive decline.
An Elliott Wave five-wave bullish impulse typically unfolds as waves 1, 2, 3, 4, and 5 in the direction of the larger trend. Waves 1, 3, and 5 are motive waves, while waves 2 and 4 are corrective pullbacks, with wave 3 often being the strongest and most extended leg.
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