Hmm. Sometimes the feeling of deja-vu is coming when we look at the price chart.
The pattern we have right now, we’ve seen it before. Not in ETHBTC, but several times in “old-fashioned” markets, like EURUSD, Gold or SPX500.
The wave “c” is almost perfect 100 % of the wave “a”, which is the most standard correlation between these two waves in a zigzag correction.
We can’t ignore it, so we aren’t only bullish anymore, we also consider this bearish count.
There is a clear line/price level, where this count will become prefered one. Namely if we pass the green line on a move down.
So, the level 0.01860 is critical now.
But what is our bullish Elliott Wave pattern for now and why did we mention about deja-vu?
Because it also happened several times (the writer of this post still remembers very clearly a case with EURUSD few years ago), despite the clear 100 % relationship between potential “a” and “c”, it wasn’t “abc” (correction) but instead the very strong 1-2-3-4-5 (motive) move.
If this is again what we are going to experience here, then it could take this shape:
This count, however, will only then become more real, if we pass the top green line.
So, the level 0.02280 is very important for the bullish case and need to be passed.
Now, after we shared all what we consider to be important short-term, we also publish the long-term chart (actually two of them). One of the subscribers asked us for it:
Both of them have the same outcome in the long-term. The rise above 0.037.
But you also see the difference. The second count means we had an extended 5-th wave. Mostly it means the correction will go into the area of the previous wave 1. In our case it would mean that ETHBTC will go as low as 0.005-0.008
If the price indeed goes so low, there will definately be a lot of fear and concerns about ETH and Ethereum. Actually, this kind of fear is exactly what an Elliott Waves analytic wants to see, read and smell at the end of the intermediate wave 2. We didn’t have it yet, so this count is still on our table.
For the moment, however, let us focus on the shorter term frames. We have identifed two clear levels to observe:
- 0.0228 on the way up or
- 0.01860 on the way down
When one of this level gets broken, we will come back with the next post.
Take care. We share our knoweledge for you can benefit of it. Use your own trading strategies though. Everyone is somehow unique. So you are too.