Straight and to the point since time is money.
We recently completed an ABC of a 5 wave down EW with major fibs being tested as resistance/support (Retracement from top of Wave 1 to the bottom of Wave 5). Currently, ETH is treading water above the .786 fib in a 5 wave down pattern that just started on Jan 5th. This support already broke twice: a strong pop back above it the first time, and a lackluster effort in round 2. Further, a descending triangle was formed so it’s only a matter of time for downwards price action. Everything is lining up bad news bears for ETH.
While wave 2 statistics are not on the bears’ side regarding the most recent Wave 2 fib retracement %, the .382 bounce is sufficient. As we are in the midst of Wave 3 on the way down it is NOT a good place to be long at the moment. The overall trend line rejection around the .50 fib in green further supports this idea. Maybe, just maybe, ETH will bounce to 122 range on this wave but I don’t think it makes a difference as the higher probability is downwards. A couple more support points at approx. 112, 98, and 90 as speed bumps, (they also correspond with fib points) but I don’t think they matter, as of now. Unfortunately, if you are long, it is looking like more downwards movement. BTC should also fall, according to cyclical analysis and other indicators, so this should aid in taking it down too.
Please like my idea if you think it's helpful and, as usual, a disclaimer that it's for education purposes.
Thanks, and happy trading.
We recently completed an ABC of a 5 wave down EW with major fibs being tested as resistance/support (Retracement from top of Wave 1 to the bottom of Wave 5). Currently, ETH is treading water above the .786 fib in a 5 wave down pattern that just started on Jan 5th. This support already broke twice: a strong pop back above it the first time, and a lackluster effort in round 2. Further, a descending triangle was formed so it’s only a matter of time for downwards price action. Everything is lining up bad news bears for ETH.
While wave 2 statistics are not on the bears’ side regarding the most recent Wave 2 fib retracement %, the .382 bounce is sufficient. As we are in the midst of Wave 3 on the way down it is NOT a good place to be long at the moment. The overall trend line rejection around the .50 fib in green further supports this idea. Maybe, just maybe, ETH will bounce to 122 range on this wave but I don’t think it makes a difference as the higher probability is downwards. A couple more support points at approx. 112, 98, and 90 as speed bumps, (they also correspond with fib points) but I don’t think they matter, as of now. Unfortunately, if you are long, it is looking like more downwards movement. BTC should also fall, according to cyclical analysis and other indicators, so this should aid in taking it down too.
Please like my idea if you think it's helpful and, as usual, a disclaimer that it's for education purposes.
Thanks, and happy trading.
Comment:
So far, so good. See the bottom of this sub wave 5 around 114.3, but it could test 114 with a spike down. Then, abc to finish wave 2 before another big plunge down as wave 3.
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