Wednesday Update - Ethereum
The upcoming FED decision has been discussed in our bitcoin update, so as usual I will only focus on the technical situation in Ethereum.
Surprisingly, Ethereum has shown some weakness in the last days and the price got rejected from the 1.236 extension three times already. At the time of writing this article, we are still trading below this important level. The problematic situation here is the following, bitcoin managed to push way above the red Fibonacci zone, but Ethereum is still trading below it.
Because of this the wave (c) scenario stay on the chart, as soon as we breach above the 1.386 extension at 1884$ this alternative gets invalidated. Note these levels and watch them in the next hours, I would be pleased if we could manage to break above them today. (Really depends on today's interest decision)
The interesting part is that most altcoins are in a similar position and the optimal case would be that the whole market catches up to bitcoin in order to validate the different wave (iii) scenario in each cryptocurrency.
I am copy-pasting the two scenarios from our Sunday update because the situation is exactly the same since then.
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$
STOP-LOSS: NONE
LONGTERM Target: +8’000$