Last time we were correct when we said
‘I think we will see a final push below 40000 toward the 35/38000 area is the cryptos often end with a wave 4 triangle followed by an impulsive push out of the triangle at least the depth of the triangle so roughly 5000. There is divergence on the MACD so any move lower could see a sharp reversal and that would be the first signal that a low is in place.’
We sold off to around the 31000 level before sharply reversing . However given the current level and its proximity to the 42700 level a more bearish chart has equal weight and on a risk reward basis I would wait for a break of the 47000 level to buy and use the next chart as a pattern if we start to se a sell off in the next couple of days.
Whilst below 42712 we can argue that wave (iv) is taking the form of a larger corrective triangle that should see us complete and other up and down move between 3000 and the wave A high before breaking lower to new lows with targets around the 20000 level. I would have liked to see a come divergence ( although this is not necessary ) to say we have seen the low already as like last week I am on alert for a spike lower whilst below 42712.
Last time we said
‘I am looking for a final accelerated sell off towards the green trendline and 61.8% retracement level at 3000. A break there will a move to test the previous wave (iv) around 2100.’
We traded down to 1730 before trading higher yesterday. Unlike Bitcoin we have divergence in the MACD so are more confident in calling a low in ETHEREUM . Look buy around the 2300 level add around the 2000 with stops below last weeks low.