Ethereum Kissed $200 Support Goodbye. Do You Know the Real Reason Why?
Elliott wave analysis set the bearish, near-term stage just before ETH/USD's recent sell-off
by Nico Isaac
Updated: August 15, 2019
"The bears are going strong" in Ethereum, wrote one crypto news source on August 12 (cryptonewsz.com), and our chart of Ethereum shows you why.
From a high on August 6, the world's second-largest cryptocurrency has plummeted more than $60 -- a 25% sell-off! -- to a new, multi-month low.
Another source stressed, it's "do or die time," as Ethereum share crashed to just 8% of the total cryptocurrency market, it's lowest stake in two years. (Aug. 15 EWN)
For some Ethereum traders, the dire scene of August 15 may be hard to comprehend; the reason being: just one week ago, the exact same market was basking in the glow of positive news reports and upbeat price projections.
The pinnacle of good news came from an August 4 article titled "Ethereum is Winning the Platform War." The piece observed that, days into its fourth birthday, Ethereum was celebrating a major victory:
"Despite numerous rivals, no other platform has been able to match Ethereum in development or network effects... For the time being, Ethereum's dominance seems safe and secure." (CryptoBriefing)
Adding to the rosy outlooks were these headlines from the time:
- "Ethereum prices is showing a lot of positive signs... ETH price might continue to climb towards the $240 and $250 levels." (August 5 newsBTC)
- "Ethereum Prices (ETH) Holing Uptrend Support, Bulls in Control" (August 5 NewsBTC)
- "Ethereum Price Analysis: ETH Could Surpass $300 This Week" (August 4 BItcoinist)
Yet -- instead of rallying above $240, $250 and even $300, Ethereum turned down on August 6 in a relentless decline well below the psychologically significant $200 level.
So, what happened?
You can read many after-the-fact explanations. Let me give you one that spotted the likely reversal ahead of time.
On August 5 -- one day before ETH turned down -- our Crypto Pro Service's daily analysis of the market identified a bearish Elliott wave setup underway. There, chief currency analyst Tony Carrion labeled a wave 2 decline on ETH price chart and said:
"We'll look for a reversal to occur beneath the 190.11 low. Only an advance above 318.60 would turn the count more bullish. An impulsive reversal should signal the end of the recovery."
The dramatic "do or die" sell-off that has ensued since then fits the Elliott wave script to a "T," or E-T-H that is.
Today's mainstream news stories on Ethereum may have some place in determining where its prices will be tomorrow. Still, what has more bearing on its trend is investor psychology -- and no other method helps you foresee its twists and turns as objectively as Elliott waves.
Ensure you have the objective details necessary to help identify high-confidence trade setups before they occur right here.
Learn How to Trade Ethereum Using Elliott Waves
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