Hello traders and investors, today we will talk about Elliott waves on Ethereum, and why we think that coin can be bottoming.
On the 4-hour ETHUSD chart below, price made a clear five-wave impulsive rally from the lows, so we believe that the bottom is in place and bulls are back. However, in Elliott Wave theory, after every five waves, we can expect a three-wave (A)-(B)-(C) pullback, so ideally we will see a slow down soon.
From a technical point of view, we see a very interesting 2000 resistance level, from which we can expect a correction back the former 4th waves. The first support is around 1600 area, while the second, deeper support would be around 1300 area. As long as the price is above 880 invalidation level, we will remain bullish.
Happy trading and investing!
If you are interested in FX, check also our latest EURJPY chart HERE