Today $ETH formed a very strong Bearish Engulfing. At least one day of lower prices is expected. Most likely – a multi-day decline. Let’s evaluate the options on the different time frames.
As expected, after 12 price advances, $ETH made a bearish statement. A very strong one , supported by an RSI break down from the overbought area. The Engulfing candle engulfs the previous green one entirely, including the bottom wick. It means that bearish continuation is almost certain.
Odds: Strong Bearish
Elliott Waves & Forecast
As projected in the monthly analysis (link below), $ETH made a push towards $2700 and started a pullback. The first day was impressive in depth, however, we would need to wait for 1-2 days to get the wave down complete, before making further forecasts.
From the monthly:
“Following the limitations set by monthly and weekly candles, I am expecting a pullback to the dark blue rectangle area – $2200-2350. However, a shallow retrace to $2450 would not be a surprise.
While a deep retrace to ~$1900 is possible under the EW guidelines, I view this possibility as very unlikely as this point.
Possible duration of the pullback – 5-10 days.“
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