ETH is expected to continue increasing into price discovery. In addition, the rate of acceleration is likely to be faster than that of bitcoin (BTC).
ETH/BTC has been increasing since March 24.
It managed to reclaim the ₿0.0352 resistance area on April 2. Afterwards, it validated it as support ten days later.
Since then, it has been moving upwards. The two main resistance areas are found at ₿0.0397 and ₿0.046. The former is the 0.618 Fib retracement level while the latter the February highs.
The wave count indicates that ETH has begun a long-term bullish impulse (white). If so, it is currently in wave three.
The sub-wave count is given in black. Judging by the rate of increase of sub-wave one, it is likely that the long-term wave three has extended.
Therefore, a potential target for the top of this wave is found at ₿0.087. This would give waves 1:3 a 1:1.61 ratio.
In addition, the ₿0.082 level is the 0.618 Fib retracement of the previous decrease. Therefore, the entire ₿0.082-₿0.087 area is likely to act as the top of wave three.
Today, ETH managed to reach a new all-time high price of $2,487. The wave count indicates that it is in an extended wave five (white).
The sub-wave count is given in orange, while the minor sub-wave count in black.
A potential target for the top of this move is located at $4,500. This is found by using an external retracement on sub-wave two.
When looking at the sub-wave count, this seems like a massive 1-2/1-2 wave formation.
A closer look at the minor sub-wave movement also shows an extension. The first minor resistance level is found at $3,240.
To conclude, ETH is expected to increase well into price discovery, with the first resistance being found at $3,200.
In addition, the rate of increase is likely to be much faster than that of BTC.
For BeInCrypto’s latest bitcoin (BTC) analysis, click here.