We expect price to grind further down from $38.7k before looking to buy back on a break above $40.8k.
Expect prices to drop further if we remain under $3'025, and would look to buy at $2'480. We expect the next leg higher if $3'180 is broken above.
Last time we said that a break of the $38'200 level:
‘Will call for a larger correction with support at $36'300, until the bottom of the channel followed by $34'060 where wave (y) is equal in length to (w). I would remain long with stops below $38'200, same as last week and look to buy again cheaper’
We continue to look for a move lower in 5 waves to complete wave (X) and would look to rebuy at levels above or on a break above $40'800. I believe we probably have a few more weeks of drifting lower to complete this larger correction
Last week we showed the chart for a potential break of the $2'820 level and said:
'I am not looking for too much downside and would look to start buying again at $2'740 and $2'620 with stops below $2'490'
We bought ETH as it traded down to $2'717 but would look to sell it now at $2'805. Whilst below $3'025, we expect prices to drop lower, however a daily close above $3'180 will highlight that the next leg higher is underway.
Wave Y will be equal in length to wave W at $2'480 and therefore would look to buy at that level and add on a test of the downward channel.