Consolidation in Ethereum has continued as it struggles with new highs at $493.50. The Kovach OBV, which measures longer term momentum is strong, but the Kovach Chande, which measures shorter term momentum, is wavering. We face continued resistance at the upper bound of the Kovach Reversals Indicator, augured by a red triangle on the 25th. The upper and lower bounds must narrow eventually, supporting the case for more consolidation or a pullback.
Although we face resistance at $493.50, there is support from a psychological level at $450, a trend line below at $427, and $387, a recent high. Price targets include the psychological level of $500, and the Fibonacci Extension at $625, where we will likely face more resistance.
We are still likely in Wave 3, the longest and strongest, or the impulse wave of a 5-3 Elliott Wave. Anticipate more pullback as we enter Wave 4. On four hour charts, we appear to be forming a head and shoulders pattern which portends a reversal.
CONCLUSION – Ethereum has continued to consolidate. Consider adding to a position now, or upon more of a pullback.
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