Cryptocurrency as a whole took a beating yesterday, with Bitcoin leading, the market went into a short free fall across almost the entire marketplace. If you take a quick look at my last analysis posted on Ethereum, you'll see the plan pretty much went perfectly up until yesterday, except from where price broke the support/resistance zone but instead of staying above the zone as I had hoped for, price actually went below the zone instead, therefore negating the last part of my analysis. This was due to a hard sell off in the marketplace, and I didn't foresee the market going down as steeply as it did. But this has happened, and obviously I will continue to track every step Ethereum takes to make sure we're sufficiently updated, so that we can react to a trade as soon as needed.
Now looking at Ethereum, it traded strongly downwards in yesterdays trading session to the horizontal support zone between 425 and 408. since hitting the zone, price has stopped, at least for now and is showing some very small signs of bullish presence. When price has only just hit the support zone, it is too early to predict whether price will actually stay at this support or potentially go lower. So for that reason I will now outline the possibilities, and then just keep updating the analysis as Ethereum begins moving properly.
Ethereum is now likely to run 2 possible paths. they are:
-- Ethereum bounces off the horizontal support zone it's currently at, corrects higher to around 456, which is the level where the 20 and 50 moving average will likely be by then, and they will act as resistance, before again falling to the downside, hitting the horizontal support zone we're at now, again.
-- Ethereum does a small pop now, not more than 10 points, and falls again, and gets dominated by the bears again. If this happens we will break the horizontal support zone and fall lower, probably finding support at a side-wards support line at 362 before a likely bounce up.
Bear in mind that if price falls lower to the side-wards support line it has a much higher odds of bouncing from this level, purely on the basis that by the time Ethereum gets this low, it would be in an extended downtrend and it would need to correct here as per normal Elliot Wave behavior.
I will continue to update this analysis if it receives enough attention.
Please leave a LIKE and FOLLOW, I'd really appreciate it. :-)
Now looking at Ethereum, it traded strongly downwards in yesterdays trading session to the horizontal support zone between 425 and 408. since hitting the zone, price has stopped, at least for now and is showing some very small signs of bullish presence. When price has only just hit the support zone, it is too early to predict whether price will actually stay at this support or potentially go lower. So for that reason I will now outline the possibilities, and then just keep updating the analysis as Ethereum begins moving properly.
Ethereum is now likely to run 2 possible paths. they are:
-- Ethereum bounces off the horizontal support zone it's currently at, corrects higher to around 456, which is the level where the 20 and 50 moving average will likely be by then, and they will act as resistance, before again falling to the downside, hitting the horizontal support zone we're at now, again.
-- Ethereum does a small pop now, not more than 10 points, and falls again, and gets dominated by the bears again. If this happens we will break the horizontal support zone and fall lower, probably finding support at a side-wards support line at 362 before a likely bounce up.
Bear in mind that if price falls lower to the side-wards support line it has a much higher odds of bouncing from this level, purely on the basis that by the time Ethereum gets this low, it would be in an extended downtrend and it would need to correct here as per normal Elliot Wave behavior.
I will continue to update this analysis if it receives enough attention.
Please leave a LIKE and FOLLOW, I'd really appreciate it. :-)
Will bee post updated as it progresses. :-)