Bitcoin & Ethereum - Be Careful - Technical Analysis

Bitcoin Technical Analysis

The situation for Ethereum is much more relaxed. Since it is already a couple of waves farther, the downward extension still has some more room, although the bears managed to reach the ideal target in wave four. Currently, we expect a deeper decline into the indicated trading zone and that the price for Ethereum reaches the region around $1,200. The structure that the bulls are working on since the most recent low point is not really convincing at this point. In addition to that, the countermovement has not established a preliminary high.

Ethereum Technical Analysis

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Ethereum Technical Analysis

Moreover, the indicators, too, hint that a deeper penetration of the trading zone is thinkable. As long as we stay above $1,175, such a movement would not be much of concern. However, if the bulls cannot defend this mark and fall below $1,175, we will see, just as we would with Bitcoin, a more comprehensive correction towards $600 in Ethereum. There is a high chance of 40% for such a movement to occur for the time being. Hence, we are also at a critical crossroads in Ethereum. But we also need to bear in mind that if such a bigger correction sets in, we will see much higher prices in the future. Given the bulls manage to complete the turnaround within the trading area, we will face prices of above $3000. However, we are not there yet, and the bulls do not show any clear signs that the correction is completed.

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