Ethereum - Descending Triangle + EPIC Bounce Play Coming Up
The crypto markets have been super volatile over the last couple of days and we see recording breaking volume across many exchanges, indicating that capitulation might be in process right now. This doesn't necessarily mean that it'll be "the low", but I believe we're pretty damn close to it. Good opportunities are coming up!
Elliot Waves
I'm personally not a big fan of Elliot Wave Theory myself, but the previous waves have been playing out pretty nicely so far, so I'll take them into consideration on this chart. We're at the last of the 5 waves right now.
Descending Triangle Breakdown
We're currently forming a descending triangle on ETH, which is considered bearish. If this one breaks to the downside, I can image prices capitulating to around $100, which would be the next good support level.
Bounce Play Targets
If this really were to happen, I believe that we'd see nice capitulation wicks and an epic bounce right after that, with prices possibly retracing up to the 0.618 Fib extension around $170. The RSI up to the daily has never been this oversold in 2018 and we're seeing bullish divergences on multiple timeframes, so a bounce is not the question of an "if" but only of a "when" in my opinion.
Setup Invalidated
If prices go above $140, the descending triangle pattern would be busted and we'd probably see an earlier bounce.
Elliot Waves
I'm personally not a big fan of Elliot Wave Theory myself, but the previous waves have been playing out pretty nicely so far, so I'll take them into consideration on this chart. We're at the last of the 5 waves right now.
Descending Triangle Breakdown
We're currently forming a descending triangle on ETH, which is considered bearish. If this one breaks to the downside, I can image prices capitulating to around $100, which would be the next good support level.
Bounce Play Targets
If this really were to happen, I believe that we'd see nice capitulation wicks and an epic bounce right after that, with prices possibly retracing up to the 0.618 Fib extension around $170. The RSI up to the daily has never been this oversold in 2018 and we're seeing bullish divergences on multiple timeframes, so a bounce is not the question of an "if" but only of a "when" in my opinion.
Setup Invalidated
If prices go above $140, the descending triangle pattern would be busted and we'd probably see an earlier bounce.
Comment:
This setup is still in play, the descending triangle turned into a bear pennant which looks like it's about to break down soon.
