The Bears’ Last Chance to Take Ethereum Down

The Correction Is Likely Not Complete

Two weeks ago, see here, I updated you on my short-term Elliott Wave Principle (EWP) count (based on a daily-resolution chart). Back then, I found

“the first order for the Bulls is to close the price back above the 50-day simple moving average (blue line) as that SMA has been resistance over the last two days. Above it opens the door to $1700+.”

The Bulls did all that this week but failed to hold the breakout today. As such, the rally from the late August low also looks corrective. See figure 1 below, which is the bearish option I have shared with my premium crypto trading members throughout to ensure they would stay as well-informed as possible.

Figure 1. Ethereum daily chart with detailed EWP count and technical indicators.

Ethereum Can Still Reach $1200+/-100 Before Rallying Again

As I wrote two weeks ago, “corrections comprise three waves (a-b-c), and since the August 14 high, that is what we got so far. Of course, corrections can become more complex, i.e., double or triple corrective patterns. But, for now, we cannot know if that will happen or not.”

However, that more complex corrective pattern is most likely unfolding, and “the 2^nd leg lower … ideally … to $1200+/-100” that I was initially looking for may finally come to fruition (nobody has all the correct answers all the time). Namely, the Bulls are on full watch on a move below $1490 as that will negate a Bullish setup from the late August $1422 lows.

Of course, below that low, we can set our sights on $1320-1150 for a rather typical/classic 61.80-76.40% retrace of (red) W-i/a to complete W-ii/b. And so far, the price action since the mid-August high is still corrective. That means the next rally, W-iii/c to ideally $3500, will get underway once the correction is over.