There is increased popularity in the related Ethereum blockchain for so-called decentralized finance applications. Ethereum made a network upgrade would allow it to process a similar number of transactions as Mastercard Inc. and Visa Inc.

Blockchain computing may be the future of the cloud and Ether is the best investment considering the risk and reward in crypto. Most of the risks include only setbacks for the network upgrade or a crypto bear market.

Ether increased its value five times last year compared with the quadrupling in the price of Bitcoin during a polarizing crypto growth. Supporters believe that digital coins are growing as an asset class, while critics say they remain susceptible to uncontrolled speculation and major instability.

What transpired? Ether had a complex (red) intermediate wave-iv to $2952 (August 18 low), an extended -subdividing- wave-v to complete (black) major wave-1 at $4026on September 3, and ETH dropped to as low as $2678 on Tuesday, September 21. Albeit the cryptocurrency did not adhere to the ideal/textbook path, the overall pattern forecasted over a month ago, and in fact, already drafted early August (see here), came to fruition.

IMHO there is no other and better method available than the EWP to know what path lies ahead, even almost two months in advance! Hence, my premium crypto trading members are always well-aware of the course that lies ahead, giving them a tremendous edge over those who do not. They are also aware that we are dealing with a probabilistic environment. All we can do is anticipate the ideal/textbook path, monitor the price action to see if it adheres, and then adjust as necessary. In this case, only a few adjustments were required. So what’s next for Ethereum?

Figure 1. ETH daily chart with EWP count and technical indicators.

The “pullback, rally, significant pullback” came and went. Wave-2 looks about complete

Corrections always are made up of at least three waves: an initiation move down (wave-a), a dead-cat bounce (wave-b), final leg lower (wave-c). In this case, see Figure 1, I can identify three (red) intermediate waves (a,b,c) since the $4026 high made September 3. Depending type of correction (zigzag vs. flat vs. triangle vs. complex), the c-wave is often about equal in length to the a-wave, measured from the bounce (b-wave) high.

Here c=a targeted around $2800. ETH bottomed at $2678, which is well within reasonable margins of error. The recent two-day rally can still be a smaller degree 4th wave of this c-wave: green minor-4, but it is unnecessary. If it is, ETH will fall below $2678 one last time, target the 62.8% retrace of wave-1 at $2575 and then reverse higher.

Remember, back in August, I forecasted, “…a multi-week correction, wave-2, should unfold. It can target anywhere between $2145-2865 depending on how deep or shallow this wave-2 will become. It is impossible to know beforehand. However, typically 2^nd waves retrace about 50-62% of the entire prior 1^st wave, so I anticipate for now -without having any data at hand yet to confirm a bottom in the $2380-2590 zone (orange rectangle). Once more price data becomes available, I can fine-tune this pending and anticipated low.”

Bottom line: In an uncertain world, one can not expect me to foresee every move and every tick weeks beforehand. But with the EWP, I was able to have an excellent idea of what was ahead for ETH weeks in advance and to a degree of accuracy, no other method IMHO can. Thus, my wave-1,2 forecast has been of the “so far so good” type, if I may say so myself. If $2678 was all she wrote, I consider that forecast complete and will start to look for the setup towards $9000. If $2678 does not hold, expect a trip to $2575. Ethereum will have to drop below that level to suggest a trip back down to the recent summer lows that can still be in the cards.

The concerns around cryptocurrency saw Bitcoin on Wednesday dropping briefly below $40,000 for the first time since August in volatile trading. This is the third consecutive day of fall for the virtual currency.

Rivals including Ether and Litecoin also slumped.

“Bitcoin needs to retake the 200-day moving average at $46,000 and consolidate before a collective sigh can be released,” Antoni Trenchev, co-founder of crypto lender Nexo told news agency Reuters.

The fall was a result of a discussion on cryptocurrencies on Tuesday where US Securities and Exchange Commission Chair Gary Gensler said past instances of banks and other firms offering private forms of money have failed.

Gensler reiterated that US securities rules give his agency great authority over digital tokens. He also said there are some “gaps” in oversight of digital tokens that Congress could help close, such as regulating crypto exchanges.

Bitcoin is still getting the bulk of inflows at $15.3 million, data from digital asset manager CoinShares showed on Monday. It further showed that inflows were seen across the board.

Digital currency inflows for 2021 were a still a robust $5.96 billion.

There are many cryptocurrencies, blockchain platforms and exchanges which have gained prominence in recent years. These are: Dogecoin (DOGE), Cardano (ADA), Binance Coin (BNB) and Solana (SOL). After bitcoin, the most popular one is Etherium.

According to Mint, Ethereum is is not a blockchain, or a cryptocurrency. It is actually a protocol (a set of rules or procedures). The original Ethereum split into two blockchains – Ethereum and Ethereum Classic – after the 2016 Decentralized Autonomous Organization (DAO) hack.

Ether (ETH) is the world’s second-largest crypto by market cap after bitcoin. Ethereum was conceived in 2013 by programmer Vitalik Buterin.

The most popular Ethereum tokens are Stablecoins, which mirror the value of fiat currencies like the US dollars, governance tokens, which represent voting power in decentralised organizations and non-fungible tokens (NFTs) that represent a collectible piece of digital art.