If ETH closes tomorrow below $3915.00 (Coinbase price), it will form a bearish Engulfing on the monthly frame. If so, get ready for at least a month of lower prices. As I type – ETH is $3720. In other words, a 5% rally tomorrow would probably save the coin.
Let’s discuss the current settings in the candles and Elliott Waves.
This daily overview contains:
– daily candle charts – analysis of candles and technical events;
– long term forecast/chart;
– short term EW chart and targets.
The possibility of forming a complete bearish Engulfing is very real. The consequences will be very unpleasant (for bulls).
Yesterday the weekly PSAR flipped bearish. The event is quite rare and it further supports the bearishness on the longer term frames.
Today ETH made a Thrusting Line combo that is viewed as a very weak bullish, most likely a bearish continuation.
If the coin closes tomorrow above $3828, it would be strong short-term bullish. Any lower price will keep the odds bearish.
Any bounces will likely be short-lived and shallow in light of the 3-day Falling 3 Methods completed yesterday.
As suggested yesterday: “… as the coin is strongly oversold on 1 and 4 hour charts, a minor bounce or a horizontal move could happen for a day or two.“
Big Bear Alert on December 28:
From the previous analysis: “The monthly and quarterly candles will be printed this week. Their current shapes are vulnerable to a sizeable decline if it happens before the end of year. The next five days could be the trend setting for the months/quarters ahead.”
I have several reasons to think that the most recent ATH could be the top of wave (I) of Super Cycle. However, a few confirmations are needed and I hope to get them with the quarterly/monthly candles. The preliminary Long Term chart.
The strength of the wave down hints of a possible triangle breakout that I was tracking for a while. Note that ETH has finally moved below the long term channel started in July.
Current targets: $3210-2950, also possible – $2620.
In order to make an attempt to flip the short-term odds bullish, #ETH would need to close on December 31 at least above ~$3828. Until it happens – the odds remain bearish.
If ETH closes tomorrow below $3915.00 (Coinbase price), it will form a bearish Engulfing on the monthly frame. If it happens, get ready for at least a month of lower prices.
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