Tuesday Update 03.01 - Ethereum
This update features another bearish scenario, stay tuned!
Except for one difference, we are still facing a very similar situation in ethereum as we do in bitcoin.
The trading volume was very low in ethereum and the price couldn't breach below the last low @ 1'151.20 or above the resistance @ 1'352.70 to give us a first hint towards a bullish reversal.
However, ethereum managed to slightly break out of the bearish diagonal which pushed the market down for the last months, currently we are trading more than 2% above the marked red line.
To be clear, this doesn't change anything regarding our bearish scenario in ethereum because there is a second bearish alternative that we marked in the chart below.
This chart formation points towards a symmetrical triangle which dates back to mid-June, this is an additional bearish signal because such big triangles ONLY emerge in a wave 4 or a wave b.
Even if ethereum should manage to break above @ 1'352.70 we would still persist on our bearish stance and in the end the triangle would lead to lower prices too.
We expect that ethereum will soon re-enter the bearish diagonal and the next days should deliver increasing volume which should push to the price lower.
We will watch the market very carefully in the next days and update everyone next Thursday.
Greetings
Benjamin Mendenmein