EthereumLong
Nearing Final Bottom: ETHUSD
Updated
Please take a quick look at my previous longer-term ETHUSD chart (linked) which shows the importance of the red trendline. Price is now approaching this trendline at last. We want to see a quick waterfall sell-off over the next few days that will seriously test this trendline and form some nice V-bottom type price action to bring this bear market to an end finally.
In this chart I'm zoomed in to 4-Hr to see if there are any setups with a bit more accuracy. We've got a breakdown point at the 179 level where price suddenly fell out of bed - this is a good midpoint candidate. This midpoint projected a low around 134 and you'll note that there was indeed significant support in that zone (blue rectangle). I interpret this as a hint that my fib setup is valid and worth following further. With the ongoing price suppression, the 134 zone didn't hold long and we have since continued lower where I'm now watching the 61.8 fib extension level around 77. It would line up well with a test of the long term trendline.
Bottom Line - I expect ETHUSD to put in a final low in the 65-75 zone.
In this chart I'm zoomed in to 4-Hr to see if there are any setups with a bit more accuracy. We've got a breakdown point at the 179 level where price suddenly fell out of bed - this is a good midpoint candidate. This midpoint projected a low around 134 and you'll note that there was indeed significant support in that zone (blue rectangle). I interpret this as a hint that my fib setup is valid and worth following further. With the ongoing price suppression, the 134 zone didn't hold long and we have since continued lower where I'm now watching the 61.8 fib extension level around 77. It would line up well with a test of the long term trendline.
Bottom Line - I expect ETHUSD to put in a final low in the 65-75 zone.
Note
We're not seeing the quick waterfall sell-off I was expecting, rather we continue to meander sideways with an overall downward flavor. This makes me cautious and less confident in this setup. I suspect a much more drastic final sell-off is coming shortly or we continue to drift downwards for weeks at which point the red trendline will be tested but at lower prices.
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