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Ethereum Price Analysis: Is a Downside Move Still Possible?

In the latest video update on Ethereum, the chart analysis reveals a green candle, indicating a rally in price. However, despite this positive movement, the possibility of a downside move still exists. The analysis points out that the price has only rallied in three waves so far, suggesting that a five-wave move is still technically possible.

The Importance of Accumulating at Lows

The video emphasizes the importance of accumulating Ethereum at its lows, especially after a liquidation event. The oversold RSI and the low MACD reading further support the idea that a low could be in place. However, it is crucial to note that this cannot be confirmed until a five-wave move is observed.

Confirmation of a Low: The Blue Wave Count

To confirm that a low is in place, the analysis highlights the need to see the Blue Wave count play out. This requires breaking above resistance, creating a higher low, and another higher high. Additionally, the structure of the move should be diagonal. Bitcoin follows a similar pattern, with a forced wave count that can also work.

Trading Strategy: Letting It Play Out

While it may be too late to trade Ethereum to the upside, the video suggests that the best strategy now is to let the market play out. If the price continues to run, it should give us five waves, which can be used to formulate a pullback zone for scaling in. On the other hand, if it breaks down, it should do so from the current level.

Key Pivot Point: Arriving at the 50 FIP Level

The analysis highlights that Ethereum has reached a key pivot point as it arrives at the 50 FIP level. The relevance of Fibonacci levels is emphasized, and further clarity is expected over the course of the day. The recent rally is seen as news-driven, potentially related to the grayscale ETF and the SEC ruling. However, caution is advised as such rallies often lead to corrective structures.

The Importance of Accumulating Pullbacks

The video reiterates the importance of accumulating Ethereum during pullbacks. This strategy is seen as a lazy, relaxed, and healthy way to deal with the market. It is particularly effective for Bitcoin and Ethereum, which are viewed as long-term assets. The video also mentions the need to accumulate more BTC and ETH during this bear market.

FAQs

1. Can Ethereum experience a downside move despite the recent rally?

Yes, the possibility of a downside move still exists. While the recent rally is positive, the price has only rallied in three waves so far, leaving room for a potential five-wave move to the downside.

2. How can we confirm that a low is in place for Ethereum?

To confirm that a low is in place, we need to see the Blue Wave count play out. This requires breaking above resistance, creating a higher low, and another higher high. Additionally, the structure of the move should be diagonal.

3. What is the recommended trading strategy for Ethereum at the moment?

The video suggests letting the market play out and not trading Ethereum to the upside at this point. Instead, it is advised to wait for a confirmed low and use the five-wave move to formulate a pullback zone for scaling in.

4. What is the significance of the 50 FIP level for Ethereum?

The 50 FIP level is a key pivot point for Ethereum. It is currently fighting with this level, and further clarity is expected over the course of the day. Fibonacci levels are seen as relevant indicators in the market.

5. How should one approach accumulating Ethereum during pullbacks?

Accumulating Ethereum during pullbacks is seen as a long-term strategy. It involves continuously adding to positions, taking profits as the market allows, and scaling back in as the price goes lower. This approach is considered lazy, relaxed, and healthy for dealing with the market.