ETHUSD broke out of a consolidation phase with a continuation of a bullish trend. However, as ETHUSD reaches its top point of its Elliot waves it is looking like a good time to get out (if you followed my previous analysis you would've gotten in earlier than $400 from just a few days ago). It is aboveBbollinger bands, bearish RSI divergence as well helping to build the thesis for a short.
Why did I choose the top I did? It already broke the 2.618 Fibonacci extensions of wave 1-2 on wave 5, meaning that the most likely outcome is that it reaches a 1:1 Fibonacci extension of wave 3-4. This is where $474.6 lies. I chose to use these two potential extensions because the third wave extended beyond the 1.618 Fibonacci extensions, just barely, of wave 1-2.
Look for the Fibonacci levels of being points of support/resistance.
Why did I choose the top I did? It already broke the 2.618 Fibonacci extensions of wave 1-2 on wave 5, meaning that the most likely outcome is that it reaches a 1:1 Fibonacci extension of wave 3-4. This is where $474.6 lies. I chose to use these two potential extensions because the third wave extended beyond the 1.618 Fibonacci extensions, just barely, of wave 1-2.
Look for the Fibonacci levels of being points of support/resistance.