Similar to BTC, ETH is forming a Gartley pattern but lagging behind in the timeline, as we know, we need to see the two harmonic "wings" (horizontally X to B, and B to D) develop in same lengths until we consider it full-fledged. Then we will wait for a confirmation of reversal near point D.
However, we don't see any support near the area of D, or any sign or reversal for the time being. My idea is I don't consider buying until 600 to 650 as shown in the chart where 1.27AB ($593) and AB=CD ($620) gives a potential reversal zone.
Please comment, like my idea or share yours, much appreciated!
Comment
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We will look for sign of bottom on 4H chart, but it's still early in time, we can expect that to happen in the next 2 or 3 weeks. An ideal setup is that it hold around 600 for some time and drag the MA21 (Green) down close to 650 ish (the purple curve I added ) then break the resistance to the upside.
You guys need to look at BTC price, dumb just consider the one. It will flip and rise agasint BTC rise and will correct from here.
hankchef
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@kravit43, yes, let's not ignore the correlation between BTC and other Cryptocurrencies. Actually I did an analysis on BTC but although we see that potential reversal pattern currently on BTC, I didn't find any other support - so it's a risky trade here to go long immediately which violates my principle of favorable Risk Return ratio.
cheretic
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There is a trendline around that area. Also the Target of the Broken rising wedge pennant.
hankchef
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@Cherity, Nice observations of the wedge, channel and support.
I only use very few (less than 3) indicators now - it helps me focus on the price action itself. But it's really nice to see our analysis coincides - If that support holds valid around there, we might see the reversal.
cheretic
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@hankchef, I'm hoping so. It will have been a text book 535 ABC correction if so and then we will begin a new wave 1 of wave 3 of a much larger cycle. All aboard!!