Ethereum Risks a Move to Under $500

A recent post pointed out the very negative configuration on Bitcoin (first chart here). That count needs to be revised as the high from Friday has been breached. So long as the 7/7 high remains intact, we may simply count it like this:

BTC

Ethereum, on the other hand has taken out its prior high, but it remains in an equally precarious structure. Today’s spike involved a perfect strike of perfectly parallel rails (I “cloned” the lines so as to be precise). It’s a perfect strike. Haha, algos are so weird. At any rate, the bear flag itself has a deep measured move (which I’ve noted). We may not get that low, but it’s possible that we do.

And the whole structure counts very elegantly. A “C” leg should be an impulse, and this clearly is (unlike Bitcoin, which requires some fudging to make it a true impulse). And if this is redistribution, it should end with a spike just like this one, the “upthrust after distribution.”

ETH

So, let’s see what happens. But, this remains a good setup for failure in both assets.


Note: When articles are first posted, most of them are made available only to my Patreon supporters (I do try to publish some public posts on occasion). Over time (usually after a period of a few weeks or so), I make all of the work public. To gain access to my work when it is produced, please consider becoming a patron. More information may be found on my About page and on my Patreon page. In a nutshell, patrons of any denomination (you get to pick the amount) will be able to read my weekend analyses, Tier 1 members ($20/mo.) get access to all of the articles I write, and Tier 2 members ($35/mo.) get access to those, plus counts on other instruments and my Discord chatroom.


Leave a Reply

Your email address will not be published. Required fields are marked *