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Ethereum (ETH / USD) is finally making a bullish breakout. The previous bullish swing was 3 years ago when the price action broke above $ 1,300.
The withdrawal and correction was strong and long. Will the ETH / USD bulls really manage to regain full control from the bears?
Price charts and technical analysis
ETH / USD continued to rise over the weekend, breaking above the $ 500 mark. The new high is also breaking the Fibonacci target of -61.8%. This is a typical target for a C wave, so a break indicates a 3 wave is becoming more likely.
The subsequent confirmation of a 3 wave occurs if the price action is able to exceed the Fibonacci target of -100%. A bull flag may also develop (orange arrows) but eventually a breakout is expected (green arrows).
On the 4-hour chart, the bullish momentum remains strong. Price action appears to be in a 3 (gray) wave. Once this wave 3 is completed, we expect a correction to wave 4. Usually waves 4 are long and wavy (orange arrows) as a continuation graphic pattern of the bull flag.
A break below the top of wave 1 (green box) invalidates the 5-wave pattern (gray) (red circle). But it does not invalidate the entire uptrend due to the expected support for the long-term moving averages.
Happy trading,
Chris Svorcik
The analysis was carried out with the indicators and model of the SWAT method (simple wave analysis and trading). For more analysis and daily technical and wave updates, sign up for our newsletter
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