It’s time for Ethereum analysis. If you remember my last analysis it has the target $500 and there are no reasons to buy it higher. Yesterday’s dump triggered the new impulsive wave to the downside, but if you want to trade ETH we have to catch the every pump’s top to short it.
Let’s take a look at the 4h timeframe of the ETHUSDT chart of the WhiteBit exchange. The Elliott waves formation coincides with the Bitcoin’s structure. ETH has also finished the upward correction which was represented as the zigzag ABC. The wave 1 to the downside is in progress. It can be finished now because the significant pool of liquidity has been already collected, but we have another one at $1150.
Regardless of where the wave 1 will be finished the $1240 level looks like the perfect short entry. 0.5 Fibonacci retracement and local liquidity pool located there. I have the short position for Bitcoin, but Ethereum has the same structure, you can use this setup if you wish instead of BTC.
Best regards, Ivan
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The local bottom has been reached. Waiting for the bounce in the wave 2.