Grayscale Ethereum Trust ETF – ETHE (1D) Elliott Wave Technical Analysis

Daily Chart

Function: Identifying the major trend
Mode: Motive
Structure: Impulse
Position: Wave [iii]
Direction: Downtrend

Details:

Wave [iii] has progressed halfway, and key Fibonacci levels for wave (iii) of [iii] are now met.

The next phase marks the final segment in the 5-wave sequence of wave [iii].

Currently, wave (iv) is underway. It’s expected to end within the next week, followed by the beginning of wave (v).

Invalidation Level: $22.00

Grayscale Ethereum Trust ETF – ETHE (4H) Elliott Wave Technical Analysis

Hourly Chart

Function: Tracking minor trends
Mode: Motive
Structure: Impulse
Position: Wave (iii) in orange
Direction: Downtrend

Details:

Wave (iv) correction has started. The ETF is expected to move sideways near the end point of the previous 4th wave of a smaller degree.

This correction likely won’t be deep, based on how wave (ii) retraced.

If price overlaps $14.97, the current wave structure becomes invalid, signaling that wave (iv) may already be in progress.

Invalidation Level: $22.00

Conclusion

ETHE has entered wave (iv), positioning itself for a short trade setup.

Wave (v) could drive a decline of at least $5.

Even though the count remains valid at $22.00, alternate scenarios will be reviewed.

Now is the time to prepare for the next market move.

Sticking to Elliott Wave guidelines and monitoring invalidation levels helps traders avoid unnecessary risks.
Technical Analyst: Simon Brooks

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