Sunday Update - Take me higher
The situation in Ethereum is slightly different from the one in bitcoin, and this will be today's topic which we talk about.
The little brother of bitcoin only gained +30% in the past days and lacks behind, this is rather unusual because oftentimes Ethereum is the one who has the more exciting rallies. Additionally, Ethereum reached the marked 1.236 extension and the chart and slightly retraced back from it. The red Fibonacci zone resembles the most optimal targets for a wave (b) and Ethereum should obliterate these resistances, in order to continue our wave (iii) scenario.
You have heard it right – we also adjusted the wave (iii) scenario to our primary one, mainly because of bitcoin. The overall market seems to recover and Ethereum should catch up with bitcoin in the next days.
This wave (iii) in Ethereum should lift us up to 2445$ and in the best case we would push a few hundred dollars above the minimum target at 1.618 extension. Just like in bitcoin, the orange Fibonacci zone should be reached in the next days or weeks. We will continue to monitor the situation in Ethereum and our altcoins, if needed we will update you accordingly.
But i can’t stress how important it is for Ethereum to breach above 1884$ QUICKLY, the sooner we would get this confirmation the better. If the price doesn’t manage to do this we would most likely still be in a wave (b) correction which would ultimately result in a wave (c) scenario. This bearish scenario is marked with a red flag and would mean that we will tumble down to prices of around 1400$.
So the most important thing of today’s update summarized, Ethereum needs to pull itself up from the bootstraps and crush the resistance at 1884$. END OF STORY
Just like in bitcoin, the two scenarios are summarized below.
Scenario 1 (PRIMARY) – Bullish wave (iii)
The bullish wave (iii) scenario would mean that Ethereum manages to breach above or red Fibonacci zone and most importantly above the resistance at 1884$. From there on we will see huge price increases and would reach the minimum target of wave (iii) at 2445$. The orange Fibonacci zone should be reached and a corrective wave (iv) would cool off the rally.
Scenario 2 (ALTERNATIVE) – Correction in wave (c)
The bearish wave (c) scenario is still on the table and would mean that the whole movement of the past days would be a wave (b). Sadly this would result in a wave (c) correction which would push us down to 1400$ again, a “running flat” is the most likely pattern to play out.
Please note that we are already invested in Ethereum since the 15th of June, back then we announced our first positions here on tradingview.
Long Ethereum (ETHUSD)
AVERAGE EXECUTION PRICE: 1’057.6$
LONGTERM Target: +8’000$