#Ethereum = Daily Analysis = 04.08.2021 $ETH #ETH #investing #cryptocurrency #crypto #ElliottWave

A rare event happened today with $ETH. A Bullish Engulfing of a Bearish Engulfing, against all odds, signaling a possible very strong rally. Let’s evaluate the options on the different time frames.

Candles

Daily
A Bullish Engulfing today canceled a Bearish Engulfing of yesterday. The odds of this event were less than 20%, but Market is always right.

Technical indicators were about 50/50 yesterday, but today they positively signal further uptrend. If there is a green candle tomorrow, the rally should be very strong.
Odds: Strong Bullish

Elliott Waves & Forecast

From the perspective of EW, wave (2) retraced minimally required 0.236 of the length of wave (1) and wave (3) could be underway. One indicator supports the hypothesis that the current wave is wave (3); we will see whether another joins tomorrow.

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.

If wave (2) is completed, the pullback took less than 3 days. It is somewhat aligned with the duration of wave 2 of a smaller degree and supports the idea of extreme bullishness.

If the counts are correct and wave (3) is in progress, the targets:
– wave (3) – $3800-4100
– wave (5) – $4500-4800
Timing for (5) – possibly end of August – September.

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Previous Monthly:

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