Last week we expected a sell off
‘and an acceleration on a break of the 30000 level with initial target at 27000. Whilst we remain below yesterdays high at 36700 we will look for opportunities to buy lower.’
We failed to trade below 30000 and have since retraced further than my thoughts last week. I would look for lower targets now towards the 20k level. A move above 42450 would have me initially worried followed by an hourly close above 46000 would negate this view and place the next bullish chart as the preferred pattern.
This is the more bullish wave count that will come into play with a close above 42450. The reason this is still not my preferred count is the distance travelled in wave (v) is very short given the projection of the triangle and the failure to make a new low giving a truncated wave (v) , which is a rare occurrence. However the strength off the lows has me worried , but as you can see we have only rallied off the low in 3 waves which is a corrective pattern so another small correction followed by a rally higher will create 5 waves off the lows and add confidence to this view.
Last time we said
‘While we trade above 2175 the wave (ii) low the bullish case for Ethereum remains valid . We met a lot of resistance between 2840 and 2911 and we need to see an hourly close above this level to see an acceleration higher with initial target at 3198 followed by 3822. A more bearish view would be in play on a break of 2175 and is shown on the next page.’
As you can see we are trading at virtually identical levels as the last update and as none of the above levels have broken, last weeks view remain unchanged.
Last time we were looking at the bearish triangle scenario and as no levels have been broken the view and levels remain unchanged
‘Here we can see a triangle set up like Bitcoin which calls for lower towards the 1400 level . We need to see an hourly close below 2183 to confirm this view. A close above 2910 will negate this view as discussed previously.’