From our last update the market choose the second option (thrust out of the triangle). This seem to be the way to finish the wave 5.
In this update we will have many charts. As always don’t take anything here as the trading advice. Or, in other words, don’t think that the author is giving some kind of advice. The reason for keep saying this is simple. Some of the readers after reading would like to go long on ETH (or add to the positions), where others would thing – “time to go short (or close)”.
Then what advice is given here? Right, none at all. We are just studying the charts and the market sentiment.
Long-term chart for ETHBTC, very long-term:
The relationship between the waves 1,61 is the most “classic” one. So, we could expect the ETHBTC reach this point – 0.064.
The next most popular relationship is 2,61 and this might be the case in ETH vs. fiat. We take the ETHEUR for demonstration purposes:
Here we can see that the climb up to around €55 is possible. In USD the same patter would lead us to around $60.
Let’s see the smaller time-frame, there we have pretty interesting picture:
We had beautiful triangle (red lines). The beauty here is the fact that triangles are always the termination pattern. As it is written here: “triangles nearly always occur in positions prior to the final actionary wave in the pattern of one larger degree”.
It means one very important thing: the author is 95 % sure: we are finishing the ETH rise of one larger degree.
That’s why we are left with one the most important question: Is this 5-th wave over or not?
This is where the green “the most important line” comes into the game. The 5-th wave started there and as long as we stay above it, it can keep fighting its way up. Once this line is crossed, the structure is complete.
Here is the ETHBTC look at it:
The key level to observe now – 0.039. Once broken, the chance for “the top in place” increases greatly. And we will definitely come back to analyzing the charts and especially the prevailing crowd sentiment at that moment.
To finish the update for today, one more chart, this time for DASH.
We didn’t discuss this asset here, instead there was a short twitt from our Santiment.net team, telling that it’s time to reverse. Pretty much exactly on the top.
The declining volume while price keeps trying to increase is very typical sign of the top. We have it in ETH now too. Is it possible that “this time is different” and ETH will behave differently? Finally, we have so many great fundamental news!
The author doubts that this time is different. If anything stay the same it is how the crowd behaves. Newcomers are mostly buying the tops. Just to experience what the crypto wild-west is. And we have huge amount of newcomers in ETH lately…
Stay tuned. The spring is coming!
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.
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