Hello Crypto traders!
Today we will talk about Ethereum. Its price action from technical point of view and wave structure from Elliott Wave perspective.
ETHUSD is in recovery mode and from Elliott Wave perspective we can see a three-wave A-B-C Elliott wave corrective rally in progress. The main reason why we are looking for a corrective rise is because of wave B Elliott wave triangle in the middle. Triangles cannot occur in wave 2, so it should be an A-B-C.
Wave C is a motive wave and it should be completed by a five-wave cycle. Where final wave (5) of C is still missing.
So, from technical point of view, we can easily see more gains till the end of the week. Ideally towards projected 3600-4000 resistance area , from where we will have to be aware of a reversal down again.
Be humble and trade smart!
Triangle is an Elliott wave pattern seen during sideways market consolidations, it is composed of 5 corrective sequences labeled as A,B,C,D,E.
The Triangle presents a balance of forces between buyers and sellers, causing a sideways movement that is usually associated with decreasing volume and volatility.
As we can see, it is a continuation pattern which breaks in direction of the preceding move. It could occur in wave 4 in an impulsive structure, wave B in a zig-zag and wave X connector in double and triple threes Elliott wave structures. It could also occur in wave Y of a WXY structure in which case it marks the end of correction.
Triangles also indicate that the last wave is coming before a reversal. So in our case we see it trading in wave B, which indicates the final C leg.
Elliott Wave Analysis: ETHUSD Is Trading In Wave C by ew-forecast on TradingView.com