FX.co ★ Ethereum Elliott Wave analysis for 30/01/2019

Ethereum Elliott Wave analysis for 30/01/2019:

Wave progression is unfolding as planned, upward bounce expected.

Technical market overview:

The ETH/USD pair has hit the target at the level of 100.15 as expected and currently, the market is trying to bounce upwards towards the technical resistance at the level of 108.45. The nearest intraday technical resistance is seen at the level of 104.55 and this level must be broken first on the way to 108.45. The momentum is now increasing, so this is a positive indication for bulls.

One more factor, that supports the short-term bullish outlook (albeit only corrective) is the clear bullish divergence between momentum and price made between the wave 3 and wave 5. This is a classic example of how the momentum should be distributed during the impulsive wave development.

Weekly Pivot Points:

WR3 - 128.11

WR2 - 123.01

WR1 - 116.51

Weekly Pivot - 111.61

WS1 - 105.04

WS2 - 99.74

WS3 - 93.46

Trading recommendations:

All sell orders have hit the projected target zone and now should be closed in profit. Traders should wait for the market to bounce up towards the technical resistance as see whether the bears will push the price lower again or not. Right now is not a good time to trade, is way better to stay aside and observe the market behavior for a while.