Grayscale Ethereum Trust ETF – ETHE (1D) Elliott Wave Technical Analysis
Daily Chart
Function: Major Trend

Mode: Motive

Structure: Impulse

Position: Wave [iii]

Direction: Decline

Details:

Wave [iii] is currently halfway completed, and the necessary Fibonacci levels for wave (iii) of [iii] have been satisfied.

This indicates that the next move will be the final leg of the wave [iii] five-wave decline.

Wave (iv) has now begun and could complete by next week, leading to the start of wave (v).

Invalidation Level: $22.00

Grayscale Ethereum Trust ETF – ETHE (4H) Elliott Wave Technical Analysis
Hourly Chart
Function: Major trend (Minor degree, grey)

Mode: Motive

Structure: Impulse

Position: Wave (iv) orange

Direction: Decline

Details:

Wave (iv) correction has started, and the ETF is expected to move sideways temporarily, targeting the previous fourth wave of a lower degree.

The wave (iv) correction is likely to be shallow, especially compared to the retracement during wave (ii).

If the price moves above $14.97, it would invalidate the current outlook and imply that wave (iv) is already underway.

At the moment, the market is progressing through wave b of (iv).

Invalidation Level: $22.00

Conclusion
The summary of the Elliott Wave analysis is:

ETHE has now entered wave (iv) – providing a setup opportunity for short positions.

The wave (v) decline is anticipated to result in a minimum price change of $5.

Although the count remains valid up to $22.00, a reassessment may be needed if the price reaches this level.

This is a critical time to strategize trades for the next impulsive move.

Traders must follow Elliott Wave rules closely and monitor invalidation levels to avoid preventable losses.

Technical Analyst: Simon Brooks

More By This Author:

Unlocking ASX Trading Success: Car Group Limited - Tuesday, May 6
Elliott Wave Technical Analysis: U.S. Dollar/Swiss Franc - Tuesday, May 6
Elliott Wave Technical Analysis KOSPI Composite Index