Foreign Welcome to another update video about Ethereum so we have um here in line with My view from the last video we've Actually made one more lower low and I Talked about that in the previous video That we were here in some kind of a you Could call it a payoff like you know Um but basically a three wave move to The upside indicated this was just a Corrective wave up and not yet the Breakout yeah yesterday I had here the Um the low of a wave 2 and said we have A chance now to move higher as long as The port is holding but then we only put Three waves in came down in the previous Video we were still in the channel but I Made you aware that yeah generally Looking at this it indicates that we are Actually in a w x y pattern of this Wave 2 and that it is a more Um How do you say a more complex correction That could come down a bit lower Um if it stays like that now then I Would maybe even go back to the previous Overall count and say we had a wave one Two here and another one two set up here Um Because with this wave low that we've Put in today at 1180 we're still staying Above the previous low So ideally I would like to see a low so in that
Particular wave count where the Wave 2 Is sitting here in the Wave Y you would Ideally want to go below this swing low Here but in the end you know it doesn't Really matter too much if I have a only A one two setup here or a one two one Two the important thing is that we've Put a new low in place In this Correction and it now has a chance to Move up it has a chance doesn't mean it Has to happen Um at the moment we see a green candle Here yes but it's not enough price Action to really confirm anything I Think the first evidence that indeed we Are moving up would be if we break back Sort of into this channel here Um that would be a move above let's say 1210 and then we would need to break out Above the Wave 4 high at 12 26 if we do That it would be a really good Indication that things are moving up in A wave three yeah we talked about that In the previous video that we are Putting away three in Um I can give you a Target based on the Current High and the current low So Target would actually be Round about the 1624 level four away Three in Red so but it's too early to Say that all you need to know is there Is now a chance to move up from here
Again we are back in the support area And that continues to be the relevant Support area for ethereum in the bullish Scenario of course there's a bearish Case as well there's a bearish scenario Because of course it is not guaranteed That the bullish case is working out we Want to be prepared for lower prices as Well even though this sort of higher Level pattern that started in June with The June low for me still suggests that A higher level let's say bullish Breakout pattern is in play here the Chart looks much better than for example Bitcoin Um here that we had a wave one where we Moved up to two thousand twenty dollars We came down in a wave two but the most Recent low on the on the 9th of November At around 1075 and we could now move up In the Wave 3 and we've just looked at The Red Wave count for that third wave What could also happen Is that we are breaking down Um relevant level here very relevant Level here is the one thousand dollar Level so I've got a yellow support box On the chart that goes down to 11 30. as Long as we stay above 11 30 Um it's all fine below 11 30 it's like The yellow warning light goes on right And it means that you know you get close To one thousand dollars and if we break Below a thousand then we're probably
Going to make a new low even lower than The June low which was at around 880 Um because a bearish scenario cannot be Ruled out in the bearish scenario this Year would be a corrective wave to the Upside I talked about that before that The move up that occurred from 880 to 2020 is not really an Impulse I can Count it better as a diagonal pattern And a diagonal pattern can also be a Corrective wave for me it is still Unlikely or less likely because of the Distance that was Um basically made here from from that Low to the high basically 140 percent That was that would be unusual for such A corrective wave pattern but it's of Course not impossible and um Yeah based on that the bearish pattern Would be that we moved down here in or That we are moving down in a diagonal Pattern as well so that this was a Corrective move up and we are now so Basically a wave 4 top and we come down In a wave one two this was a Wave 3 down Hero Wave 4 and diagonal and there will Be one more wave down in a wave five and Again that can subdivide lower maybe Into the region around 650 maybe even Lower depending on how the sub waves are Working out Um there is even the scenario where we Could count it a little bit different There would be even more bearish where
We say Um all of this was a wave one this was Wave two here with three four and five That would subdivide much lower but Again it doesn't really make sense to Entertain that idea in too much detail Um as long as the one thousand dollar Level holds because we can only really Trade and I think that's what many People misunderstand we can only really See and trade what's in front of us and We don't necessarily try to predict the Future here of course with Elliot waves You have a predictive element because You get price targets and everything Based on fractals historical movements The larger context and likelihoods but Of course I also don't have the crystal Ball and Um What the elite wave method is so good in Understanding or in helping us Understand is the key invalidation Points the pivot Points the inflection Points where things are changing where Does a chart go from bullish into Bearish from bearish into bullish that's Exactly where you can put your stop Losses if you want to and that also Tells you from you know when do I need To change my stance because as a Trader As technical analyst we need to be Flexible we want to be objective we Don't want to be you know I'm not
Married to a bullish scenario you know In fact I'm happy to change my my view When I said below a thousand dollars This will have to be the primary Scenario that we are going to make new Lows so you know we can only trade What's in front of us and um this is and There's no way around it what we Currently put in place here is a bullish Trade setup does it work out of course You know I have no idea and is it likely I think so Um as long as especially as long as we Hold above 11 30 but there you've got Your decision point right down there at 11 30. Um so our profits guaranteed of course Not you know the markets are Um uncertain you know uncertain is the Right word there is uncertainty and if You're looking for for certainty then You're probably in the wrong space here Okay that's my update about ethereum I Hope you like the update if you did Please hit the like button leave a Comment and subscribe and if you really Like the content then please check out The channel membership thanks a lot for Watching bye