ETH preparation

Anyone who is looking to go long on ETH just be a bit careful and consider this analysis as something which could play out.

The first reason why I think we don’t start going up quickly again until mid-late Feb is partly due to the technical analysis showing unmitigated areas of supply / significant imbalances /FVG’s- which typically slow the market down by causing some negative price action.

The second reason is because of the bitcoin miners and related equities like Coinbase and Microstrategy…they have just entered a significant area of supply after a 3 wave move up - this implies the more likely move is down for at least a couple of weeks. Also on the daily timeframe Coinbase and Microstrategy show Elliot Wave counts which imply wave C down has not come in yet depending on how you interpret the charts.

The third reason is because $3000 ETH is a psychological level resting in an untested demand zone which is nestled underneath a double bottom type structure which indicates it to be a likely area for price to head down to.

It is tricky to find a highly probable trade on ETH at the moment - so it’s a waiting game until something clearer develops.