As expected, the ETH did dropped one more time yesterday. This drop even pushed the price pretty close to the mentioned levels in EUR and USD.
It is possible to count 5 waves up on a smaller time-scale. These waves are, however, far from being clear and “textbook”. Well, real life isn’t always mirroring the ideal world. For today we use another technic from TA. Namely trend-lines:The market respects this downtrend (red) line. So should we. If ETH (as expected) wants to rise from the current level, then we need to break this line. Most of the time the price will come back to retest it again. Before the final (never look back) advance starts.
It took a bit more than 24 hours to develop the current structure. Let us give the market another 24 hours to show more of the underlying mass-psychology.
Based solely on the sentiment, we are much closer to the bottom then to the top. The majority of traders are discussing at the moment how to short the market and what are the price level to reach: $4, $6 or at least $8.
The author saw, however, also quite few traders who were still pretty optimistic about the ETH. Somehow he (the author) would feel much better if more concerns would be spread all around. Well, it’s almost impossible to get 100 % bearish sentiment. What we have now is basically enough for the rise.
Bottom line. The rise is expected, the trend-line is closely watched. Let us check the situation after approx. 24 hours.
The Elliott Wave Principle describes the behaviour of the financial markets. This Principle is build on the mass psychology swings from pessimism to optimism and back in a natural sequence. When these swings happen, the specific Elliott wave patterns in price movements are created and become visible. Each pattern has implications regarding the position of the market within its overall progression, past, present and future.
The purpose of our blog posts is to outline the progress of markets in terms of the Elliott Wave Principle.
While a course of conduct regarding investments can be formulated from such application of the Wave Principle, at no time will my posts make specific recommendations for any specific person, and at no time may a reader or viewer be justified in inferring that any such advice is intended.
Very important. Investing carries risk of losses. You should be aware of all the risks associated with investing/trading financial instruments. Information provided in this blog is expressed in good faith, but it is not guaranteed.
The market service that never makes mistakes does not exist. Long-term success trading or investing in the markets demands recognition of the fact that error and uncertainty are part of any effort to assess future probabilities.
This blog and the information provided here should not be relied upon as a substitute for extensive independent research before making your investment decisions.
In no event will we be liable for any loss or damage on your account in connection with the use of our publications.