ETH is currently undergoing wave 4 (correction) that was expected in my previous post. Following this correction, there is a possibility for a 3rd actionary wave (impulse sub-wave 5), which might encounter heavy resistance from the long-term downtrend.
The correction is likely complete above the 910 support level (marked by the olive line, 0.5 fib), which is also the beginning of wave 1 territory. There is also a hard resistance line in yellow (0.786 fib), in which going below might yield greater odds of beginning a combo correction (WXY) or maybe cause a continuation of the larger degree downtrend. For now, it is unclear when this correction will be completed and whether or not it will be able to remain above these crucial levels.
Possibilities for the types of corrections include but not limited to the following:
The correction is likely complete above the 910 support level (marked by the olive line, 0.5 fib), which is also the beginning of wave 1 territory. There is also a hard resistance line in yellow (0.786 fib), in which going below might yield greater odds of beginning a combo correction (WXY) or maybe cause a continuation of the larger degree downtrend. For now, it is unclear when this correction will be completed and whether or not it will be able to remain above these crucial levels.
Possibilities for the types of corrections include but not limited to the following:
- Truncated ABC correction
- Double bottom ABC correction
- Zigzag ABC correction
- Any horizontal correction pattern or combo corrections
Commentaire:
Possible wave count where wave 4 correction is done and wave 5 impulse is in progress:
