The last time we wrote about Ethereum on August 9th. The second largest cryptocurrency fell by 42% in less than two months and fluctuated around 210 dollars. Unfortunately, our analysis of Elliott Waves falling from $ 363 indicates further weakness. See the chart below to refresh your memory.
This graph has been included in our latest article onETHUSD. We thought that Ethereum “made a decision that the bulls didn’t like”, because the drop from $ 363 looked almost like a full five-wave impulse. In the short term, this was good news, since corrective recovery was about to take place. On the other hand, the theory argues that impulses indicate the direction of a broader trend, so the overall forecast was not so encouraging. When wave 5 completed wave (1), it was necessary to expect a three-wave rally in wave (2) before the downtrend resumes in wave (3). After almost two months, we know for sure that the bulls did not like what happened next. Ethereum is currently trading at around $ 173.
Wave 5 completed wave (1) at $ 173.35 15august. Wave (2) decided to develop as an expanding flat correction A-B-C, setting a new low to $ 163.62 in wave B. Then wave C in (2) rose to $ 225 to complete the entire 5-3 cycle. By September 19, it was time for the bears to return. A week later, Ethereum barely held above $ 152, while losing a third of its value. Thanks to the principle of Elliott waves, none of this came as a big surprise. Ethereum began 2019 with $ 131, so in the fourth quarter it continues to grow by 32%. The problem is that it remains under pressure for as long as it holds $ 225. If this analysis is correct, wave 3 in (3) from this moment will pull ETHUSD to new lows.
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