ETH 5 waves up complete, now on ABC correction
Updated
ETH looks to me to have completed 5 waves up.
ETH looks now to possibly be working on the C wave of the ABC correction.
If so, it would appear we have a few options.
1. Bounce off 38.2% retracement in the mid $660's (this would be a 1.618 C extension of wave A as well). It would be very bullish if ETH bounces here and then clears recent high of $838. We'd be looking at a significant upside potential since the next wave would be the start of impulse wave 3 (target of $1386).
2. Bounce off 50% retracement around $614. Again, if we clear the recent high of $838 very bullish.
3. Bounce of 61.8% retracement around $562. This would be a very significant bounce target as impulse wave 1 frequently retraces 61.8%. Even if we don't clear a new high, a buy in this level could likely be profitable for at least a very short term trade. 61.8% pull backs tend to get at least a temporary bounce, even if does not go on to create a new impulse wave 3.
If the above zones of support all ultimately fail (I'd call failure to break $838 a failure), then I'll be looking for ETH to possibly retest recent lows ($350's) or even lower.
However, if ETH does ultimately hit one of the above targets and then moves back above $838, then the assumption is that ETH is working on wave 3 up and a 1.618 extension of wave 1 would give us wave 3 targets between $1283 and $1386 (depending on which retracement level ETH hits).
ETH looks now to possibly be working on the C wave of the ABC correction.
If so, it would appear we have a few options.
1. Bounce off 38.2% retracement in the mid $660's (this would be a 1.618 C extension of wave A as well). It would be very bullish if ETH bounces here and then clears recent high of $838. We'd be looking at a significant upside potential since the next wave would be the start of impulse wave 3 (target of $1386).
2. Bounce off 50% retracement around $614. Again, if we clear the recent high of $838 very bullish.
3. Bounce of 61.8% retracement around $562. This would be a very significant bounce target as impulse wave 1 frequently retraces 61.8%. Even if we don't clear a new high, a buy in this level could likely be profitable for at least a very short term trade. 61.8% pull backs tend to get at least a temporary bounce, even if does not go on to create a new impulse wave 3.
If the above zones of support all ultimately fail (I'd call failure to break $838 a failure), then I'll be looking for ETH to possibly retest recent lows ($350's) or even lower.
However, if ETH does ultimately hit one of the above targets and then moves back above $838, then the assumption is that ETH is working on wave 3 up and a 1.618 extension of wave 1 would give us wave 3 targets between $1283 and $1386 (depending on which retracement level ETH hits).
Trade active
Well, first target (38.2% retracement) has been reached (within about a $1 range). Now we are waiting to see the result of this current consolidation. Does ETH hit targets 2 and then eventually 3?Still watching for at least a short term entry around $562 as a relatively safe low risk, high reward position with a tight stop loss. An entry around $616 is a little higher risk, but also limits the risk of missing the boat if this was an impulse wave 1 up portending a move to much higher levels (with wave 2 being a 50% retracement that would also align with a possible ABC correction wave with C as a 1:1 extension off waves A-B as tentatively drawn here).
Trade active
Possible day or two of action in ETH (at a decision point soon if the bull run lives on or if a new bear cycle begins).
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