Crypto Charts 16

Last time we said

‘So remain long and add on dips with stops below 47100.’

Looking at the chart we are testing the bottom of the channel in what could be counted as 5 waves down and then end of wave iv. However I would look to sell and now and buy back on a break of the 49100 level. The reason I think we will see a final push below 40000 toward the 35/38000 area is the cryptos often end with a wave 4 triangle followed by an impulsive push out of the triangle at least the depth of the triangle so roughly 5000. There is divergence on the MACD so any move lower could see a sharp reversal and that would be the first signal that a low is in place.

Last time we said

‘Given the divergence in the MACD we are turning bearish on Ethereum having completed 5 wave while we trade below yesterdays high. We usually target the are of the previous wave (iv) so we expect to see at least a test of the green trendline below 3000.’

So we are not surprised by therecent sell off and given the same arguments as Bitcoin I am looking for a final accelarted sell off towards the green trendline and 61.8% retracement level at 3000. A break there will a move to test the previous wave (iv) around 2100