ETHUSD A Bear's Case - Back to 382, 400, 417, 439?
ETHUSD broke out of a consolidation phase with a continuation of a bullish trend. However, as ETHUSD reaches its top point of its Elliot waves it is looking like a good time to get out (if you followed my previous analysis you would've gotten in earlier than $400 from just a few days ago). It is aboveBbollinger bands, bearish RSI divergence as well helping to build the thesis for a short.
Why did I choose the top I did? It already broke the 2.618 Fibonacci extensions of wave 1-2 on wave 5, meaning that the most likely outcome is that it reaches a 1:1 Fibonacci extension of wave 3-4. This is where $474.6 lies. I chose to use these two potential extensions because the third wave extended beyond the 1.618 Fibonacci extensions, just barely, of wave 1-2.
Look for the Fibonacci levels of being points of support/resistance.
Why did I choose the top I did? It already broke the 2.618 Fibonacci extensions of wave 1-2 on wave 5, meaning that the most likely outcome is that it reaches a 1:1 Fibonacci extension of wave 3-4. This is where $474.6 lies. I chose to use these two potential extensions because the third wave extended beyond the 1.618 Fibonacci extensions, just barely, of wave 1-2.
Look for the Fibonacci levels of being points of support/resistance.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.