ETH Correction NOT OVER! Potential Target of $350!
Updated
We can see here a classic ZigZag ABC correction on ETH after 5 impulse waves (not shown). However, with wave C stopping short of the ideal target (550-750 with 350 possible in extreme cases!) we are witnessing a small X wave in the form of an expanding triangle before we continue down to our target. X waves are known to connect two correction patterns together when the first does not make it down to the expected target. We may see a second ABC ZigZag here (or another possible formation) that will bring us down to the desired targets of 350 or 550-750 (found using fib retracement levels).
Note
After hitting the top of the triangle and point E, we are now headed down!Note
May have misjudged my "E" wave but idea is still VALID and confident we will see a drop SOON! Rising wedge on the hourly as well.Note
Updated with correct placement of "E" wave, rising wedge shown on hourly RSI as well. RSI turning over at this point would mean a quick drop downwards, which plays along with this idea.
Note
The tipping point is near! The wedge on the hourly RSI doesn't have much room to run before a breakdown. Red candles have started to form on the hourly, a small sign of things to come. Strap in guys, the dip (and continuation of this major correction) is almost here!
Note
And we are off! Rising wedge on hourly RSI has broken down and down we go!
Next steps: Now begins the second correction formation (most likely another ABC zigzag). This second correction formation will be followed by a reversal! Will update this idea soon with more precise locations that we can expect the end of this second correction wave (and beginning of reversal) to occur at.
Note
As we can see from the chart, the bearish pennant that formed on the RSI and on the price chart showed us that it was inevitable that we would soon see a breakdown to continue our move lower. The breakdown has just occurred at time of posting this update. I have made a rough outline of our roadmap for the coming days with the idea that we will see a second zig zag (ABC) formation to complete this correction. Currently, this breakdown will be the beginning of wave 3 of 5 subwaves in the A wave of the ABC formation. Updates will be posted periodically and if the idea is negated by price action I will of course update the idea. Until then the idea is going along as planned, with the second wave of this correction well underway.
Trade closed manually
At this point the second Zig Zag (ABC) pattern has been invalidated. The idea is closed here. Will post a new idea shortly. Possibilities from this point based on the charts and Elliott Wave theory:1. A sideways correction pattern plays out within the next 36-48 hours (think consolidation) before the correction ends and we resume our journey to all time highs.
2. A sideways correction pattern plays out within the next 36-48 hours and is then followed by another small wave X and a third sideways correction pattern, before the correction ends and we resume our journey to all time highs.
Basically- more consolidation followed by the end of the correction and new all time highs. At this point I have begun scaling in with buys on ETH due to the limited forseeable downside and in anticipation of the eventual reversal.
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