ETHUSD Update: Corrective wave in play with one more leg to complete which can lead to a retest of the low 300's. A break above 334 will signal the next leg up is in progress.
In terms of wave count, we are in the C wave of subwave 2. C waves are usually impulse patterns and often make people uncomfortable. We have nothing to worry about because upon completion of this wave, there may be an attractive buying opportunity.
I am looking for this wave to complete in the low 300's, or even possible mid 290s. In that price range there is a .618 minor support that is relative to the most recent bullish swing. So it would be a convenient area to look for reversal patterns such as a double bottom on a smaller time frame. The next leg up should be the subdegree Wave 3 which in terms of proportion can lead price into the 380 resistance area or higher.
A long taken in this area would prompt me to place a stop in the mid 270s, and targets at the 345 and 374 levels. Why two levels? Because once I'm in a trade, my goal is to reduce risk and locking in profit along the way is one way I do that.
We have no control over profit targets, the market may or may not reach them, but we can control our risk. As you learned from my previous trade, I turned it into a risk free trade as soon as the market let me. It took me a long time to learn this lesson, but the focus on trading should be on making a good trade, not the profit. Profit follows good trades. It is counter intuitive, but if you manage to gain enough experience, you will eventually understand this.
In summary, this market is still poised to go higher in the long run. As long as the 279 and 263 supports hold, chances are we push to new highs sooner than not. At the moment we have one more leg of the corrective wave to play out which can complete in an area that may offer a buying opportunity. I have been saying this over and over, all this market needs is a good catalyst to capture the attention of investors and the next upswing will materialize quickly.
I'm a little bit concerned of how ETH price will be affected before and after going from POW to POS. Do you guys have an idea what could happend ? And also, when will that occur ?
mrmeeseeks
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@MarcPMarkets I bought into ETH at $318 maybe 2-3 weeks ago and I've been sitting tight throughout all the movement. I'm torn between closing my position now and attempted to re-enter around $306 and holding on for the long game, any recommendations or insights? Don't want to chase the pullback and get the horns...
cryptofan07
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Everybody is just silent on bitcoin and litecoin evaluation and its complicated to give one.
MarcPMarkets
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@cryptofan07, LTC has lacking in terms of participation, while all these other coins make their moves. Besides speed, I'm not sure what kind of value they bring to the table that is really any different than many of the other coins out there. The lack of participation has made me suspect that it may be weak, but maybe it just needs to play catch up.
cryptofan07
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and I have no doubt etherium is goin down just as you said
MarcPMarkets
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@cryptofan07, a retrace to more attractive levels would be nice.
cryptofan07
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Also BITCOIN is very intriguing. I have an impression that bulls got tired but segwit may fuel it. Interesting to see your expertise on BITCOIN
MarcPMarkets
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@cryptofan07, The BTC chart looks very similar to the ETH against the USD. I will take another look if it looks interesting, perhaps I will write another report.
cryptofan07
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Good article! Marc I would like to know your opinion on litecoin. will it popup to 60 in near future? I thought its gonna go to 60 today. I read your ideas with pleazure.
MarcPMarkets
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@cryptofan07, thank you. I have not been following that market too closely. I am not very enthusiastic about it because of it's lack of participation in recent weeks. I will keep an eye on it and if it is worth reviewing, I will write something up. Thanks for pointing it out.