ETHUSD: Short: 550-320 5th WaveLots going on in ETHUSD now, some great strong trend lines and patterns developing as we move into what is assumed as the 4th wave of this 5 wave movement downwards...
Strong Support, Resistance and Fib Correlation
Firstly, note how both the 23.6 and 38.2 fib lines provided traces for both support and resistance as the second wave moved from (1) to (2). By tracing this movement onto the current wave 4 which runs from (3) to (4)e, we see an almost identical trend forming at this early stage. Interestingly the peak from (0) to the low at (3) formed its own support and resistance, giving two vectors or reference for a possible price movement, and this has also been applied as an assumption for wave 4.
Volume Spikes
Another great indicator to test the buy in will be the clear volume spikes that have taken place at both (1) and (3) which are circled in blue. This should act as good confirmation of a buy zone at (5), although beware the bull trap circled in red - indicator will be multiple high volume exchanges rather than just a singular spike before a continuation down.
Price Scenarios
S1 and S2 provide two different scenarios for the peak of wave 4 - considering the amount of volume exiting the market and the fact we may not see anything close flood back in over the next few days, although we would expect to reach S1 @ 1100, it may be the resistance at fib line 38.2 is strong enough to hold the price until buy pressure falters. If this is the case, we would see a double peak around S2 @ 890, before a strong movement down to confirm.
T1 and T2 are therefore some provisional targets once the final wave has taken effect. I would expect some strong support at the 61.8 fib line and therefore a scenario of T1 @550 being a possibility. However, considering market conditions again with weak volume ratios, we could be looking at a similar trend of (2) to (3) where a slight bull trap could form before a continuation down to T2 @320.
Assumption: Short
Considering the current volume mix, with significant volume leaving the market causing compressed correction waves across almost all coins at this stage, a conservative estimate would suggest a move to S2 (890) followed by a move to T2 (320) in line with the 78.6 fib level.
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Opinion not advice
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