EthereumLong
ETHEREUM: 21 JULY, 2024
© Master of Elliott Wave Analysis: Hua (Shane) Cuong, CEWA-M (Master's Designation).
(Left Chart) The broad context analysis (2D Chart):
The broader context shows that ETH has started to rise since wave (4)-orange ended as a Zigzag. In fact, wave (4) concluded earlier than my initial expectation, so the Bear market trades from last week did not perform as anticipated.
Wave (5)-orange has resumed and will continue to push higher, with the primary target being the high of 3,973. The price must remain above 2,822 to maintain this view.
On the other hand, analyzing smaller time frames will allow us to delve into details and seek trading opportunities at more favorable price levels.
(Right Chart): Short-term outlook analysis (6H Chart):
The short-term outlook indicates that since the low of 2,822.64, a five-waves pattern has been unfolding to push higher, subdividing into wave (iv), which seems to have completed at the low of 3,367.65. Closer observation shows that wave (i)-orange unfolded as a Diagonal, and waves (ii)-orange and (iii)-orange have completed.
In terms of strength, the third wave performed well, showing strong and sharp price increases. Therefore, there is considerable evidence that this five-waves pattern will continue to push higher.
Current price action suggests that since the low of 3,367.65, wave (v)-orange has been unfolding to push much higher, potentially aiming for targets at the high of 3,973.90 or even further. The price must remain above 3,367.65 to maintain this view.
On the other hand, a drop below 3,367.65 would indicate that wave (iv)-orange may be extending longer than expected. However, this is less likely to occur, and you should generally bet on what happens more frequently to maximize the advantages the market offers. Wave 4 cannot "overlap" with wave (i), so a high of 3,3220 is the level to watch for when the wave count may be invalidated, requiring a re-evaluation of the entire situation.
(Left Chart) The broad context analysis (2D Chart):
The broader context shows that ETH has started to rise since wave (4)-orange ended as a Zigzag. In fact, wave (4) concluded earlier than my initial expectation, so the Bear market trades from last week did not perform as anticipated.
Wave (5)-orange has resumed and will continue to push higher, with the primary target being the high of 3,973. The price must remain above 2,822 to maintain this view.
On the other hand, analyzing smaller time frames will allow us to delve into details and seek trading opportunities at more favorable price levels.
(Right Chart): Short-term outlook analysis (6H Chart):
The short-term outlook indicates that since the low of 2,822.64, a five-waves pattern has been unfolding to push higher, subdividing into wave (iv), which seems to have completed at the low of 3,367.65. Closer observation shows that wave (i)-orange unfolded as a Diagonal, and waves (ii)-orange and (iii)-orange have completed.
In terms of strength, the third wave performed well, showing strong and sharp price increases. Therefore, there is considerable evidence that this five-waves pattern will continue to push higher.
Current price action suggests that since the low of 3,367.65, wave (v)-orange has been unfolding to push much higher, potentially aiming for targets at the high of 3,973.90 or even further. The price must remain above 3,367.65 to maintain this view.
On the other hand, a drop below 3,367.65 would indicate that wave (iv)-orange may be extending longer than expected. However, this is less likely to occur, and you should generally bet on what happens more frequently to maximize the advantages the market offers. Wave 4 cannot "overlap" with wave (i), so a high of 3,3220 is the level to watch for when the wave count may be invalidated, requiring a re-evaluation of the entire situation.
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