Ethereum needs to regain it's trendline support
Initial correction from 1400 to 700s seems to follow a 1-5 impulse wave pattern to the T (Forms A leg of correction).
{
1. 4 DOES NOT RETRACE INTO WAVE 1
2. WAVE 3 STRONGEST
3. WAVE 2 FIB LARGE
& WAVE 4 FIB SMALL
- TYPICAL OF EW (1 BIG 1 SMALL)
}
B leg of correction is roughly in the retracement area that one would suspect. This creates a resistance line we will likely fight with later on.
C leg of the correction has retraced below a long standing trend line support (yellow), and now seems to be fighting to get above it. Previously we dumped below our green support line, and ethereum fought (and failed) to get above it, leading to this further correction.
I will be keeping an eye on this trendline support/resistance to see if we can get above it again with conviction. If not it looks like our next support is mid to low 500s.
Thoughts, opinions, critiques, and lessons welcome.
{
1. 4 DOES NOT RETRACE INTO WAVE 1
2. WAVE 3 STRONGEST
3. WAVE 2 FIB LARGE
& WAVE 4 FIB SMALL
- TYPICAL OF EW (1 BIG 1 SMALL)
}
B leg of correction is roughly in the retracement area that one would suspect. This creates a resistance line we will likely fight with later on.
C leg of the correction has retraced below a long standing trend line support (yellow), and now seems to be fighting to get above it. Previously we dumped below our green support line, and ethereum fought (and failed) to get above it, leading to this further correction.
I will be keeping an eye on this trendline support/resistance to see if we can get above it again with conviction. If not it looks like our next support is mid to low 500s.
Thoughts, opinions, critiques, and lessons welcome.
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