It looks like a correction before the next wave

November 18, 2018 Ethereum

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After the massive collapse of last week, where $ 20 billion of cryptids have evaporated from the total market capitalization, the bulls take a step in trying to keep the price above the support level.

Currently Bitcoin holds the price level of $ 5,500 and currently ETH maintains the $ 174 level.

What we see is the most likely type of temporary correction to the top, in the middle of a broader downtrend direction. The market is still bearish.

Elliott's analysis of the wave suggests that the decline is not yet finished and we expect to see another downward wave in the near future.

Looking at the 4-hour chart:

– The ETH price is currently held above the support level of $ 174 with the three smaller EMAs acting as close-range resistors (8/13/22 EMA in the following table).

– We can see a red "falling star" candle (bearish candle formation) with a very long wick. The price hit the previous resistance at $ 178 and immediately withdrew.

– We should consider the possibility of another short move towards the top, like a "dead cat bouncing" towards the retracement level of 0.382 ($ 184) or even higher, towards the Fibonacci retracement level 0.5-0.618 (resistance level $ 190) if the bulls will have enough strength against the bears, which are pushing the lowest price.

– On the other hand, if the bears manage to push the lowest price, in order to break the support level of $ 168, the next target could be the $ 140-135 range.

– The RSI indicator currently contains over 30 (4-hour chart) which indicates that bulls might have the ability to "fight" and raise the price (a possible bullish signal).

– The MACD histogram is popping higher at the moment, with a positive crossover in the MACD averages.