What do we see? Well, we clearly see a bearish divergence on the daily. What we also see with that is hand in hand lower volume in the last top upwards. From that I’m drawing the fibonacci retracement levels.
Checking the Ethereum/Bitcoin chart, we can see the clear same bearish divergences on the daily now. MACD, Histo, Stoch and RSI wise.
Given the fact that I’m expecting a retracement on BTC/USD, I’m expecting Ethereum to run down after this upwards movement too.
The green zone is the obvious strong accumulation zone from earlier, where we bounced, made a falling wedge and moved upwards.
What do we see more? Two bounces around the 0.382 fibonacci level and currently not breaking the upper level: $720 zone.
That for me states that (in combination with the bearish divergences) are going to see a downwards movement.
The important fibonacci levels here are: 0.5 fib level $600 0.618 fib level $540
From there we have to see whether it’s making the bullish divergences back again in order to continue the upwards movement.
Hold your horses is my general thinking, based on TA.
The positive is that we could be starting the wave 2 (downward according to Eliott wave theory) of a larger bull market, it seems we have broken the downtrend that started in January and we are so close to confirm the ABC corrective wave, if only we stop at around 540 (seems the right level according to all the tools used in your analysis)
If we make this higher bottom we are in for a nice Christmas! 40% @ 0.5 fib ($570-600) + 60% @ 0.618 fib ($500-540)
paulofelin
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Good TA. Thank you.
gnoe
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Thanks for sharing Michael...same bear thoughts here unfortunately.
Uboakp
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some TA show that ethereum is heading toward $1000, while your TA say $600 retracement
The positive is that we could be starting the wave 2 (downward according to Eliott wave theory) of a larger bull market, it seems we have broken the downtrend that started in January and we are so close to confirm the ABC corrective wave, if only we stop at around 540 (seems the right level according to all the tools used in your analysis)
If we make this higher bottom we are in for a nice Christmas! 40% @ 0.5 fib ($570-600) + 60% @ 0.618 fib ($500-540)