First of all, this is what we're looking for in a bottom: A with a ridiculous Wick revealing major movement in both directions. We currently can't observe such a candle.
Now let's take a closer look at the overall bear market we're in. Using Waves we can see that Ethereum still has one extension wave left for completion.
I set the hypothetical bottom at the , I guess the adequate Interval is between USD 5 - USD 30.
Yes, single digit may be possible!
In classical this new higher low and higher high may indicate a trend reversal. I, however, see this current "consolidation" as a normal correction of wave 4 (---> following picture says point Nr 4, should be Nr . 3 though).
I don't believe that it will do the typical ABCDE consolidation because of the Fakeout at the resistance line that got denied and divergences in the .
In the 4hour chart the divergence is even more apparent:
The support lines of this trend are holding since March 2018! --> I therefore expect the worst if these get broken.
In addition, we can observe a hidden divergence on the weekly and (even though it's less clear on the ). Also the last weekly candle, ( following two rising candles) looks extremely , but next weeks candle first has to confirm the signal.
Taking a look at the ETH longs we can see that they have reached a new all time high accompanied with divergences and an ascending .
Shorts, on the other hand, are at an extreme low leaving much room open for shorts accumulation
Even if Ethereum manages to blast through the resistance line and reach even higher highs, the bear market isn't over unless it leaves the USD 205 mark far behind and goes beyond 220 USD, as it otherwise it may create a , and/or even a .
In conclusion, with all these indications in mind, I am extremely on ETH and the overall crypto currency market. What goes up must come down, and if something rises this crazy in the financial markets as crypto did in 2017, it has to crash until it hurts really really bad.
In the end, this is just my analysis and maybe I am wrong, but this is what I'm observing and what I'm concluding since the bubble popped a year ago.
This stand off told the story that the bear market was over, the bulls drew a line in the sand and said we we will not budge. Nothing but support from here on up.
However, I am humble enough to admit I was wrong, if it does go south. If so, I would not mind that at all from a bullish stance towards the future of cryptocurrencies.
I rarely ever see them to be honest, except in 5minutes charts they happen quite often.
this is what I’m seeing, leaving out the last wave because it’s already super messy
I see a 3-3-5 flat correction:
from a pattern perspective I only saw wedges, no h&s