“to bottom around $3800+/-200 before staging its next rally.”
The cryptocurrency bottomed on Black Friday, November 26 th, and has given that staged the very best rally given that its all-time high (ATH) was made previously in the month with, up until now, 5 successive up days. Thus it appears a crucial bottom was struck, and the weekly chart listed below programs an alternate EWP-count to the one I displayed in my numerous previous updates, however still similarly Bullish.
Figure 1. ETH weekly chart with EWP count and technical signs.
As long as Black Friday’s low of $3925 holds, Ethereum can target $5500-6400.
The weekly chart minimizes the sound of all the everyday benefit and downs. By just evaluating down weeks as restorative waves within a more substantial uptrend, it appears ETH finished (green) small waves 1, 2, 3, and 4 of (red) intermediate wave-iii, which in turn becomes part of the big (black) major-5 of (blue) Primary III. As I constantly inform my premium crypto trading members, in my everyday video updates
“The beauty of the EWP is that we know with certainty after wave three come waves four and five. Thus as long as the wave four pullback does not infringe in the wave one high, we must anticipate another wave five higher.”
Thus, if Black Friday’s low of $3925 holds the favored however tentative (green) small wave-4 low, then Ethereum can target $5500-6400. That cost target zone is the next Fibonacci- extension zone for (green) small wave 5 and common for a 3 rd wave, i.e., (red) intermediate wave-iii. It is unidentified where this wave-iii will top at this phase, once this next leg greater starts in earnest, I can narrow it down. Also, here the “after three come four and five” pattern uses. Namely, when (red) intermediate wave-iii tops, we should anticipate wave-iv and v.
From a technical viewpoint, there are unfavorable divergences on the Relative Strength Indicator (RSI5), MACD pie chart, and Money Flow Indicator (MFI14), dotted red arrows, however not on the real MACD line. Thus, the previous 2 recommended the more substantial wave-iv correction is looming when wave-5 of wave-iii finishes, whereas the latter permits that wave-5.
Besides, the cost of Ethereum is still well above its increasing 10-w basic moving average (SMA), along with the 50w, 200-w, and 20-w. Thus the pattern is 100% bullish on the weekly chart. Last however not least, ETH is likewise well above the increasing (green) Ichimoku cloud, which likewise signifies a 100% bull pattern.
Bottom line: The “anticipate ETH to bottom around $3800+/-200 before staging its next rally” viewpoint was right as ETH bottomed at $3925 recently and has actually given that rallied to within spitting range of the current ATH. Thus, as long as that low holds, ETH can stage another impulse (5-waves rally) to preferably the $5500-6400 target zone prior to the subsequent multi-week correction unfolds. Once that impulse rally is verified, I can limit the target zone more as there’s presently insufficient cost information readily available. Meanwhile, the weekly chart reveals us ETH is still in a 100% Bullish uptrend and as such, a bullish viewpoint is chosen.
This post was initially published on FX Empire