Despite Crypto Rebound, This Analyst Still Expects $20 Ethereum: Here’s Why

Tony "The Bull" Severino

1 year ago

2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Ethereum, aside from Chainlink, is the best performing cryptocurrency in the top ten by market cap. The top-ranked altcoin has had enjoyed a substantial rebound from bear market lows and surged all throughout 2020 on the heels of the DeFi trend.

But despite the greater crypto market recovery, one crypto analyst sees a bearish Elliott Wave count on Ethereum, that could take the altcoin back to double-digits, and just $20 per ETH.

Easy As ABC Correction: Elliott Wave Trader Targets $20 Ethereum

It sounds far-fetched to think Ethereum could revisit double-digit prices after the recent rise to just under $500 per ETH, but had you told investors that bought the top in early 2018 wouldn’t have expected a four-digit altcoin to fall to just $80.

The drop from $1,400 was eye-opening for anyone that experienced the full force of the crypto bear market. However, the entire cryptocurrency market, Bitcoin and Ethereum included, has had a strong showing in 2020.

The asset class is the top-performing basket of investments, beating out stocks, gold, and more. DeFi helped carry the market out of the gutter, caused Bitcoin to break above $10,000, and Ethereum to set the first higher high since its all-time peak.

But one crypto trader well versed in Elliott Wave Theory believes there’s a possibility that Ethereum returns to double-digits. Worse, yet a lower low as deep as just $20 is possible, according to the bearish wave count.

The crypto analyst expects the altcoin to experience an ABC correction, to the lower boundary of a pitchfork channel, after being rejected from the top of it.

Ethereum Elliott Wave Theory Target $20  | Source: ETHUSD on TradingView.com

Elliott Wave Theory is a polarizing trading technique, with both as many believers are there are pundits. Elliott Wave Theory believes that markets, driven by human emotion, moves in impulsive or corrective waves in varying degrees.

Related Reading | DeFi Overtakes Ethereum In The Media, Data Shows

Impulse waves are typically divided into five smaller sub-waves, while corrective waves are three. Like all technical analysis, charts are up for interpretation and should only be used to consider probabilities.

While it isn’t impossible for Ethereum to return to such low prices, after the recent showing in 2020, the probabilities are low. And even the trader himself argues that the top altcoin and Bitcoin typically rise and fall together, and is currently bullish on Bitcoin.

The analyst agrees that one side of his theory will have to be wrong. Will it be Ethereum diving to new lows, or Bitcoin soaring to new highs?

Featured image from Deposit Photos, Charts from TradingView.com

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.