ETH Classic Head and Shoulders? Initial Target = $660
On the hourly chart we can see a classic head and shoulder pattern playing out on ETH. At this time, we are completing the formation of the right shoulder. The neckline is noted with the red horizontal line, and the green horizontal line represents our target for the completion of this head and shoulders pattern. We got this target by measuring the distance between the neckline to the top of the head (orange arrow line) which gave us a measured move. We then copied the orange line and moved it to the breakdown point (neckline) to see the measured move down.
Coincidentally, this measured move is also the 161.8 fib retracement of Wave 1, which is normally where the 3rd Wave (in a 5-wave impulse) tends to end, and is another reason I believe this correction is not over. It is likely we are seeing a 5 wave impulse down, which is the A wave of another ABC zigzag lower (Ill go into more detail about this in another idea, but have drawn out the 5 wave impulse here as well for reference).
Coincidentally, this measured move is also the 161.8 fib retracement of Wave 1, which is normally where the 3rd Wave (in a 5-wave impulse) tends to end, and is another reason I believe this correction is not over. It is likely we are seeing a 5 wave impulse down, which is the A wave of another ABC zigzag lower (Ill go into more detail about this in another idea, but have drawn out the 5 wave impulse here as well for reference).
Trade closed manually:
I was wrong! No head and shoulders!