Apparently $ETH finished a 5-day consolidation. Next target – $3900-4100. Timing – August 18-20. Let’s discuss the hypothesis from the different angles.
ETH painted 5 candles that did not break any bullish pattern or build a bearish reversal combo. At the same time, no indicator was damaged. These 5 days can be viewed as a jump board to much higher prices. Expect a strong green day tomorrow.
The candle formations on a smaller frames also support the idea.
From the TA perspective, RSI has been reset and it’s no longer a strong concern.
Until a daily candle closes below $2867, nothing bearish in the picture.
Primary count – blue. As marked on the 5hr chart above, I believe that wave (3) is underway. The recent movements added confidence that $ETH is moving towards the target area – $3900-4100 that I identified a few day ago.
Alternative count – purple. If a pullback develops as a motive wave down, there is a possibility of a much longer correction that I discussed in my Weekly together with the Long Term Forecast.
FORECAST & Events to Watch:
- A daily closure below $2867 would be a major bearish alarm.
- Target for wave (3) – $3900-4100.
- Possible timing – August 18-20.
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