ETH/USD Shows Pullback In Strong Bullish Impulse And Large Uptrend

Ethereum (ETH/USD) continued with the uptrend and made another higher high as expected. Price action has now reached the first -27.2% Fibonacci target.

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Can the uptrend continue higher? And if so, what are the next targets?

Price Charts and Technical Analysis

(Click on image to enlarge)

The ETH/USD completed a bearish ABC (grey) pattern in wave 4 (pink) after bouncing at the 38.2% Fibonacci retracement level (blue box):

• Price action has reached the first -27.2% Fibonacci target (smaller blue box).
• The momentum is very strong because of these reasons:
  • Daily candles are showing an impulse with a majority of large bullish candles closing near the daily high.
  • The HMA 20 has a bullish angle with price action above it.
  • The momentum indicator confirms that 10 daily candles have not hit the 21 ema zone (green box). Usually the momentum continues (see green boxes before) higher.
  • The 21 ema zone has a steep angle and all of the moving averages are bullishly aligned with large spaces between the MAs.
• Considering the strong momentum, an immediate continuation has the highest probability (blue arrow).
• The next targets are at the -61.8% Fibonacci level around $2800 and the round $3000 level.
• The upside is probably part of multiple wave 3 patterns (purple/red).

On the 1 hour chart, price has been above the 21 ema for more than 1 week now. The bullish bounce at the 144-233 ema zone on the left of the chart was followed by another round of buying:

• The wave patterns suggest an ongoing wave 3 (grey) considering the strong bullish momentum.
• The current pullback respected the 38.2% Fibonacci of the shallow price swing. This could be a wave A (green) of a larger ABC (green) in wave 4 (blue).
• The 1st or 2nd breakout above the 21 ema zone (green arrow) could confirm the uptrend continuation.
• The uptrend certainly remains strong as long as price action remains above the 144-233 ema long-term MA. 
• This wave outlook is confirmed if there are bullish bounces at the support zone and max 50% Fib. A break below the 50% Fib places it on hold (yellow) and a deeper retrace invalidates it (red).

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