Crypto_Terminal_Daniel
Short

Brace Yourselves: Ethereum Correction is Coming

BITFINEX:ETHUSD   Ethereum / U.S. Dollar
Ethereum has been ranging for some time. Its consolidation has continued in what appears to be another leg of a bearish Elliott Wave impulse. As with BTC , the consolidation in ETH has created vacuum zones about the psychologically and technically significant $225 level, where it currently clings to support. The volatility , as measured by the ATR, has dropped effectively to zero, suggesting a burst of momentum may be due. We have very little in the way of bullish indications, other than the fact that this asset is so oversold, we're due for a proverbial 'dead cat bounce'. Read on if you're an Ethereum bull who can take the pain.

Although the sky does seem cloudy for ETH, we can find solace in the knowledge that $168 seems to be the minimal price the markets will accept. Unfortunately, we are but one breakdown from testing this level once more. The more time ETH spends around this level, the more confident it will to foray further into correction territory. However, it is highly likely that we will see some much needed buying volume before then, even if it's short-lived.

If ETH continues to break levels after $168, the next level of support is $155 or so, which corresponds to the alignment of a Fibonacci level and previous Fibonacci Extension levels. Things take a dramatic turn for the worse if these levels do not hold, since they appear to be the only major levels in the $100 handle. After that, we look for $97, a Fibonacci level very close to the psychologically significant $100 mark.

If we're right and ETH bounces off $168, we can expect resistance at $200 which is psychologically significant and aligns with a Fibonacci level. After that, we have $225 and $250, which are both psychologically and technically significant. There is $243 in between, which is a strong Fibonacci level. If we can push through all these levels, we are ready to think about the $300 handle, but the way this market has been evolving, there is no indication that we will be ready for such discussions until 2019 at the earliest.

Thanks again for reading my post! Please feel free to add any questions or discussion points in the comments. Check out my other social media as well as my profile. A follow would be very much appreciated! Good luck and good trading!

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