ETH rebounded after spiking just below our $334 reversal target from last week (blue line). Broke through the steep downward trendline. It’s possible that we bottomed here, but I’m not convinced yet. The intraday chart is currently consolidating. If a triangle is forming, we could see 1 more new low to end wave 2. Check out the intraday action since:
We have strong resistance at $360, which has been tagged (or close) 4 times in the past week. The first wave off the low looks bullish, but the others do not. If a triangle is forming here, it would be wave 4 of C, and the resulting swift move down would be a good candidate for a bottom to wrap up this correction.
The post-triangle thrust measurement indicates a move to $300 or slightly under, which coincides with the 50% retracement level. I’m looking for a strong break of the $360 resistance level as an early sign of a bottom.
Happy Trading!