Yesterday another bad day occurred in the markets, with a total market capitalization of $ 191 billion at the time of writing and especially with the fairing of Ethereum.
The price of Ethereum fell 19.23% yesterday from last Friday's high at $ 362 to $ 293 $ key break $ 337 along the way. As of August 14th, it now stands at $ 264.
By zooming in on the daily chart we can see the meaning of the level.
This horizontal level was considered to be a strong support because that level was the level from which the historical maximum was made at $ 1,380 after a breakout that had previously served strong resistance. Currently, the price is looking for support and it seems that it has found some on the next smaller horizontal range, but the impetus behind the weekend sell-offs is huge and I do not think this support will last long.
The next level of support I see is strong enough to hold the momentum at $ 221.68, but the path to it will not necessarily be in a straight line as sellers could run out of supply. My Elliott wave count indicated an even lower goal for the end of this correction.
Judging from the position of the X wave at the retracement level of 0.5 Fibonacci this could end up as a WXY correction and if this happens then the potential target of the Y wave would be at $ 103 from the point where the price broke the previous time of the all-time high at $ 388, and because we are now over this level, this horizontal support is the most likely goal for the end of the correction.
As I write this the price of Ethereum has continued to fall and has fallen below $ 290. Zoom in on the hourly chart we can see that the first goal is definitely at the level of $ 221
While the impulsive price broke out from the downward pennant the first wave reached level 0 Fibo, 2 l & # 39 wave was a shot above it and the current wave 3 which is usually the longest and the strongest pushed the price significantly lower and is still developing.
The current minor move 12345 is wave 3 from the primary corrective wave count Y After this wave of current, I would have expected a short-term recovery, potentially back to retest the support of $ 337 where he would find resistance and be rejected.
Technically speaking, the price could rise to $ 495 and the count and the target would still be valid as wave 4 does not overlap the wave 1 that ended there, but this is highly unlikely even if a possibility to be kept in mind.