The ongoing consolidation is frustrating and unfortunately Ethereum gives me reason to be worried about the next days.
The red Fibonacci extension zone between the 1.236 (1828$) and 1.386 (1884$) extension resembles a tough resistance and for more than 15 days we didn’t manage to push above these levels. This failure results in our projected alternative of a final wave (c) which would throw the market back to prices under 1400$. Each day we trade below this zone, the likelihood of the bearish alternative grows.
The only way to invalidate this scenario would be a substantial bullish impulse above the 1.386 extension at 1884$. Ethereum would have to pick up a lot of bullish momentum in order to break these levels. I estimate that many short-sellers have set their stop-loss above this line. The best case would be that a small “Short-squeeze” would push us towards the projected bullish wave (iii) at 2445$.
The best thing to do in such times is just to wait and observe, luckily we had great opportunities to load up positions in the green and blue trading zone, we will continue to set buy zones in the future.
Please note that we are already invested in Ethereum since the 15th of June 2022, back then we announced our first positions here on tradingview.
Long Ethereum (ETHUSD)
AVERAGE EXECUTION PRICE: 1’057.6$
LONGTERM Target: +8’000$