The sell off from the wave C high at $42'791 appears to be in three waves which keeps the bearish trend intact. It looks to me as if we are correcting in a wave iv expanding triangle and should see a new high above wave C. Expect resistance at the top of the channel and the 38.2% retracement level at 43'320, which is also the area of the previous wave 4. We will look for the sell-off in wave v in 5 waves to signal the buy area with a move up through 47'500 confirming the sell-off is over.
Back to back 3 wave price action for waves A and B lead me to believe that we are in a corrective triangle and are close to completing wave (C) below the wave A high at $3'211. From below $3'211 we are looking for a new low below $2'900. A move above will switch our view to a more bullish outlook and we would expect to have seen the low in Ether with confirmation the correction has ended on a move up through $3'592.
Written by Matthew Clark