ETH price action is contracting in downtrend forming a falling wedge.
We do see bullish divergence on MACD histogram and RSI on the 4H
By my count we had 5 waves down we should at least see a ABC correction up.
Entry:
For a more conservative approach we could wait for breakout from wedge with confirmation.
Stop loss:
Breaking down from falling wedge to around ~1700$ or Bitcoin rolling over.
Target:
Important notice
If Bitcoin loses support this idea can be invalidated really fast. 30k level most hold.
We are already breaking out of major support resistance also in RSI trend. This could roll over fast.
We do see bullish divergence on MACD histogram and RSI on the 4H
By my count we had 5 waves down we should at least see a ABC correction up.
Entry:
- 0.786 Fibonacci ratio at ~1865$
- 0.886 Fibonacci ratio at ~1796$
For a more conservative approach we could wait for breakout from wedge with confirmation.
Stop loss:
Breaking down from falling wedge to around ~1700$ or Bitcoin rolling over.
Target:
- First target should be point of harmonic pattern B at around but this gives a risk/reward ration of 2.31 witch is a bit to low.
- Second target should be point A at around 2287$
- Last target should be point C at around 2400$
Important notice
If Bitcoin loses support this idea can be invalidated really fast. 30k level most hold.
We are already breaking out of major support resistance also in RSI trend. This could roll over fast.
Comment:
~1829$ - ~1858$ good entry for a third wave ?
Comment:
Trade closed: target reached
