Ethereum (ETH\/USD) is finally making a bullish breakout. The previous bullish swing was 3 years ago when price action went above $1,300.<\/p>\n
The pullback and correction was strong and lengthy. Can the ETH\/USD bulls really wrestle back full control from the bears?<\/p>\n
The ETH\/USD continued higher over the weekend crossing the round $500 mark. The new high is also breaking above the -61.8% Fibonacci target. This is a typical target for a wave C so a break indicates that a wave 3 is becoming more likely.<\/p>\n
The next confirmation of a wave 3 occurs if price action is able to break above the -100% Fibonacci target. A bull flag could develop as well (orange arrows) but eventually a breakout is expected (green arrows).<\/p>\n
On the 4 hour chart, the bullish momentum remains strong. Price action seems to be in a wave 3 (grey). Once this wave 3 is completed, we are expecting a wave 4 correction. Usually wave 4s are long and choppy (orange arrows) like a bull flag continuation chart pattern.<\/p>\n
A break below the top of wave 1 (green box) invalidates (red circle) the 5 wave pattern (grey). But it does not invalidate the entire uptrend due to the expected support at the long-term moving averages.<\/p>\n
Good trading,<\/p>\n
Chris Svorcik<\/p>\n
The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter<\/p>\n
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Ethereum First Break Above $500 After 2.5 Years - FX Empire<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Ethereum (ETH\/USD) is finally making a bullish breakout. The previous bullish swing was 3 years ago when price action went above $1,300. Continue reading