Thirty-five percent on swing long is quite remarkable for a short-term rally. Some might have started thinking of a bullish return. The answer is yet to come ...
TECHNICAL ANALYSIS
In our previous verdict on the least expected scenario, Ethereum finally broke out of 1,452 USD and headed back to 1,700s USD zone. However, what was NOT on our verdict is that the breakout volume was not that impressive. There's not much momentum happening. Ethereum set out weakness throughout its flow. So, WHAT'S NEXT?
As we entered a super cycle correction, price within this range becomes more volatile. A thirty-five percent rally comes after a major forty percent decrease is not something odd. Ethereum is performing correction with a clear ABC pattern. Might it be rallying to 1,800s USD zone or even higher but the volume is indicating a weakening momentum.
BACK TO THE BASIC - ABC
Price essentially corrects in a distinct ABC pattern after a bullish rally. Whether the bull run is long-term or short-lived! A typical ABC pattern shows an impulsive "A" leg dipping hard, recovered by "B" leg which is less or higher than the price before the dipping "A" leg then projects to a dipping "C" leg. What could be falsely intriguing is that Ethereum tended to push "B" leg higher. This creates a false alarm on buyers and when "C" leg begins, the prior buyers could head-over-heel sell all their stack just to cut loss. And look who's waiting beneath to eat up all your hard-earned cash ... THE WHALES!!!
SHAKE-OUT POINT - WHAT TO EXPECT?
Once the whales finish piling up their bags, it's time to push the price higher. Out of our observation, the correction has shown 2 things - a very strong "B" leg and a weak "C" leg. A higher low (shake-out point) was formed after the prior run from "C" leg which tried to break out of "B" leg resistance zone. Apart from the first ABC pattern which failed to create a higher low (shake-out point). However, there is one thing in common. That is THE SHAKE OUT POINT ALWAYS LOOKED FORWARD TO RETESTING THE MARKET IF THERE WAS ANY FURTHER SELLERS WHO OFFERED THE COIN AT CHEAPER PRICE.
The current ABC correction is still on its way to complete "B" leg at the time of writing. A very strong "B" leg could potentially leave "C" leg trailing back to 1,300s - 1,400s USD zone. No matter how high "B" leg might swing, we patiently wait for the whole correction pattern to be completed. And of course, the 1,100s USD zone is undeniably still on the table.
THE SHARKS ARE WAITING AND SO ARE WE!!!
TECHNICAL ANALYSIS
In our previous verdict on the least expected scenario, Ethereum finally broke out of 1,452 USD and headed back to 1,700s USD zone. However, what was NOT on our verdict is that the breakout volume was not that impressive. There's not much momentum happening. Ethereum set out weakness throughout its flow. So, WHAT'S NEXT?
As we entered a super cycle correction, price within this range becomes more volatile. A thirty-five percent rally comes after a major forty percent decrease is not something odd. Ethereum is performing correction with a clear ABC pattern. Might it be rallying to 1,800s USD zone or even higher but the volume is indicating a weakening momentum.
BACK TO THE BASIC - ABC
Price essentially corrects in a distinct ABC pattern after a bullish rally. Whether the bull run is long-term or short-lived! A typical ABC pattern shows an impulsive "A" leg dipping hard, recovered by "B" leg which is less or higher than the price before the dipping "A" leg then projects to a dipping "C" leg. What could be falsely intriguing is that Ethereum tended to push "B" leg higher. This creates a false alarm on buyers and when "C" leg begins, the prior buyers could head-over-heel sell all their stack just to cut loss. And look who's waiting beneath to eat up all your hard-earned cash ... THE WHALES!!!
SHAKE-OUT POINT - WHAT TO EXPECT?
Once the whales finish piling up their bags, it's time to push the price higher. Out of our observation, the correction has shown 2 things - a very strong "B" leg and a weak "C" leg. A higher low (shake-out point) was formed after the prior run from "C" leg which tried to break out of "B" leg resistance zone. Apart from the first ABC pattern which failed to create a higher low (shake-out point). However, there is one thing in common. That is THE SHAKE OUT POINT ALWAYS LOOKED FORWARD TO RETESTING THE MARKET IF THERE WAS ANY FURTHER SELLERS WHO OFFERED THE COIN AT CHEAPER PRICE.
The current ABC correction is still on its way to complete "B" leg at the time of writing. A very strong "B" leg could potentially leave "C" leg trailing back to 1,300s - 1,400s USD zone. No matter how high "B" leg might swing, we patiently wait for the whole correction pattern to be completed. And of course, the 1,100s USD zone is undeniably still on the table.
THE SHARKS ARE WAITING AND SO ARE WE!!!
