Foreign [Music] Welcome to another update video about Ethereum so ethereum has so far failed To break through this resistance area Between 12 15 and 12 25 this is actually Quite an important area it is a key Resistance area on the chart here as you Can see here it was tested numerous Times here Here Here and just now as well all right and Here as well so we've had various tests The whole thing is looking like an Inverse Head and Shoulders but to make It play out it would really need to Break through now So you can see it here You've got your head you've got your Shoulders and to make it play out So it would need to break through and The target for it would be around Fourteen hundred dollars So however it's it's very obvious one Yeah and when these patterns are too Obvious sometimes they don't work out What um Well what concerns me a little bit is Here the latest price development or the Development in the chart which starts to Look a little bit like an ascending Wedge Like this which rather suggests that We're going to see a breakdown from here
Because this is considered a well Could call it a bearish pattern from an Elite wave point of view You could argue That this is some kind of a diagonal Pattern and that in fact we we have Um we have never seen this Blue Wave 2 Here that this might be here yeah and That the wave one will be completed at The end of the diagonal so that the Diagonal itself Is actually a wave one so let me explain That move that across So I'll explain that Um basically We've got here the yellow count as you Can see that wave one and yellow the Wave two in yellow that from the low From the 22nd of November Which was here at 1075 we created a wave One We came down in a wave two And we then Started and that will be then basically Started the wave three In this Wave 3 we've got a one two And the fact that we're creating is Something like a diagonal Makes me think maybe the whole thing is The wave one There will be a wave two that would make Sense from an you know if you look at it As an ascending wedge that would make Sense because normally they do break to
The downside it's not necessarily Bearish But it would lead to the pattern being Broken In a wave 2. it would need to find Support obviously above 1180 or 1170 And from here it could then move up in a Wave 3. that is what I can imagine could Happen But ultimately you know there are Various possibilities especially on the Short term if this is supposed to work Out as an inversion and shoulders it Should you know it should break soon Otherwise it's probably not going to Work out and it gets very much dragged Along gets a very ugly pattern and so on But yeah there is short-term upside Still possible here what are the Important levels so There are certain levels that the price Should not drop below And we can talk about them so The absolute key level that the price Should not drop below is 1100 US dollars If that happens I think we're going to See a new low This is sort of the the very relevant Key level in the very much or in the Short term It should not drop below 1170 the other 78.6 percent flip level if it goes below That then we have a big risk at falling Back to 1100 if we then lose the 1100
Level then I think we can retest the one Thousand dollars and this is the next Decision point the next key point for Ethereum why is that the case because as Long as we hold above 1000 US Dollars we Can still see and this is a four hour Chart showing the chart since June we Can still see the whole thing as a Possible larger one two setup which is According to Elite wave Um one of the best trade setups yeah Because you can get a very low risk Entry with a possibly High reward if it Doesn't work out then it's not a big Deal because you are very close to the Invalidation point anyway So the Wave 3 could take us to three Thousand dollars and if it breaks Obviously the stop loss will get Triggered and you can reset for lower But the point is if we really break the One thousand dollar level substantially We are probably going to test the 650 Level And that means we're making a new low Below the June low okay So at the moment my view is that there Is a good chance that we have short-term Upside potential that's in fact my Primary yeah Um especially in the short term that we Have short-term upset potential According to this because the move down Was only in three waves
Yeah I need to do it one second Yeah it would be like that make it we Make it like that now So the move down was only in three waves A B c yeah and the reason why I'm thinking That Um We haven't seen necessarily the low yet Is because this move down does doesn't Look finished It looks unfinished I mean it's possible That we have completely bottomed out for Ethereum but I think we're going to see One more test of at least the one Thousand dollar level Maybe even lower but important is that Short term I'm looking at upside Potential here As long as we are holding above one Thousand one hundred dollars If we drop below that we are going to Retest 1000 and below that level we are Going to retest or we are going to test The 650 level okay But yeah it's important to break through That key level of 1225 Next resistance will be this area Between 1270 and 1290 that is not the target it Is just a resistance area yeah and From here it can then move on to around Fourteen hundred dollars maybe a bit Higher
And then the retracement from here Will be the next decision Point here we Will then get a very clear understanding If It indeed is just the way for Because from here we would then break Down Or if this is indeed already and that's Possible as well a bullish breakout Pattern and we've already seen the low And we're going up from here but we Won't know that until we have finished This pattern and see the retracement Okay I'll keep you updated about that 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 [Music]