Ethereum Elliott Wave analysis for 18/01/2019:
The triangle pattern in wave 4 continues, more downside in view
Technical market overview:
The three wave advance to the level of 156.91 has been completed at January 5th and since then the market has started an impulsive decline that reached the level of support at 108.46. The decline is still in three waves only, so one more impulsive wave is needed in order to complete the cycle.
Nevertheless, the market is still developing the corrective pattern in wave 4 in a form of a triangle and there are a couple sub-waves missing inside of this pattern. Once the pattern is completed, the impulsive cycle down should resume with a projected target for wave 5 at the level of 98.17.
The larger time frame trend remains bearish on monthly, weekly and daily time frame charts, so the bears still have control over the market. This is why any upside price developments should be considered as a local correction in a downtrend only.
Technical levels to keep an eye on are: Support zone between the levels of 108.46 – 109.37 and resistance zone between the levels of 124.61 – 127.59.
The downside cycle has not been completed yet and there is still a chance for a lower price when the triangle pattern is finally completed. Short positions should be in play as long as the level of 127.59 is not clearly violated. Targets for bears are seen at the level of 109.37, 108.46 and in a case of a further sell of – 98.17.
The material has been provided by InstaForex Company – www.instaforex.com