Ethereum Update: Wave 5 Could Target $3,000 As Altcoins Prepare To Outperform Bitcoin

Good morning, crypto traders! We discussed the ongoing five-wave bullish impulse in Ethereum back on September 15, and the recent price action continues to support this outlook. Ethereum is recovering strongly within the projected five-wave impulse, as expected. Although the price is currently slowing down, this is likely just a new wave 4 correction, which could find support around the $2,400–$2,300 area. From there, we may still see bullish continuation within wave 5 towards the $2,900–$3,000 area, especially if the price recovers back above the $2,633 level. However, if Ethereum decisively breaks below $2,300, we will start tracking a higher-degree correction instead.

ETHBTC: Ethereum May Continue to Outperform Bitcoin

The ETHBTC pair remains nicely on track. After recently identifying a five-wave impulse into wave A/1, we can now see an ABC correction developing within a projected wave B/2, which may be slowly approaching completion. Support could be found within the 0.030–0.027 area. If this scenario plays out as expected, we could soon see a continuation higher within wave C or 3, supporting our view that Ethereum could outperform Bitcoin over the coming days and weeks.

Altcoin Dominance: Room for Further Outperformance

Regarding dominance, the BTC.D/OTHERS.D ratio may now be ready to resume its decline, suggesting that altcoins could continue to outperform Bitcoin. The impulsive structure may still have a wave 5 remaining, keeping the door open for additional upside in altcoins even if Bitcoin remains stuck in a sideways consolidation. This would also support the bullish outlook for Ethereum, particularly if ETHBTC completes its current correction and resumes its advance.