Ethereum is an open-source blockchain-based distributed computing platform featuring smart contract functionality. It provides a decentralized Turing-complete virtual machine, the Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes. Ethereum also provides a crypto-currency token called “ether”, which can be transferred between accounts and used to compensate participant nodes for computations performed.
Ethereum went live in 2015, it quickly gained attraction in the digital world and it’s currently the second largest Crypto-Currency with 20 Billion Dollar in market cap surpassing Ripple (11 Billion) and sitting behind the Bitcoin (39 Billion). Since the start of 2017 , all the digital currencies doubled its value after after prices kept rising higher in the recent months and buyers all over the world jumping in to take a piece of the rally.
Looking at the some daily charts of the digital coins, you’ll probably see a parabolic curve to the upside which may seems hard to catch any trade. However using our swing sequences and following the trend which is clearly bullish as the instrument keeps making higher highs then buying the pullbacks in 3 , 7 or 11 swing was the right way to catch every dip during the recent rally.
Let’s take a look at the lower time frame chart of Ethereum and Bitcoin and explore the potential scenarios.
Ethereum: ETHUSD 4H Chart 05/31/2017
Ethereum saw a 50% decline from 05/25/2017 peak which may caused a lot of fear around the market, but looking at the technical picture the correction came after a 5 waves move from the lows and that why it was another great opportunity to buy ETHUSD after 3 waves zigzag pullback into the equal legs area 136 – 104. The instrument already rallied from the inflection area and managed to make a new all time highs opening a new extension to the upside toward ideally 315 – 365 area. In the shorter term, a pullback from 225 – 250 can be seen against 110 low but it can be just a shallow 3 waves pullback before Ethereum resumes the rally again as it has an incomplete bullish sequence.
