Foreign Welcome to another update video about Ethereum so after the late night Ethereum update here Gotta do another one uh I think we've Got a bit more clarity about the lower Level wave count now after the price Action over the last few hours To be honest not much changed the focus Is still on the upside Um as I said before No change really Um we've been waiting for that breakout That we saw here Since Um when was it we've been waiting for This For a week now I think yeah I've been Waiting for that for a week when I made You aware about this inverse Head and Shoulders or we could argue maybe this Still counts as inverse Head and Shoulders which broke out left shoulder Head Right shoulder two shoulders I don't Know but um yesterday we obviously Identified here this smaller inverse Head and Shoulders pattern as well left Shoulder head right shoulder and we Reached a perfect Target that you would Get by measuring the head of this Inverse head and shoulders so that all Worked out And obviously we don't use these
Patterns very often there isn't really a Head and shoulders pattern in Elite wave However when you sometimes get Confluence between let's say the elite Waves and patterns then this you know Sometimes starts to look really really Good Um And that's when I take them seriously Yeah because all it means is that The price was pushed down sellers can't Push the price down any lower you know They try it can't really Buyers push to the upside and Breakthrough that's the inverse head and Shoulders so Um weakness in the sellers strength in The bias and that's exactly what we Observed here quite a quick recovery After dropping down into my support area Here again is visible why I usually say That it's best to use limit orders Because you would have missed this one Long position had you not used a limit Order because the price came only very Briefly into my support area which was Based here Um around key Fibonacci levels for this Wave 2 retracement so the idea is that This was a wave one to the upside a five Wave move been talking about that all Week yeah Um and then here Wave 2 to the downside Wave one up wave two down usually
Followed by a Wave 3 to the upside Anybody who missed the entry down here Was aware about the breakout point that I highlighted as well of 12 27 1228 so Another limit order could have been set Here but this is not nothing I would do When buying a breakout I would always Make sure that the position size is very Small because you're far away from Invalidation you're far away from Key Support I mean the key support is still Down here Between 1100 and 11 55 roughly yeah That's where the key support area is if You now buy it around 12 30 you're far Away from support you risk coming down Much lower your risk increases the Rewards shrink and that's just um the Reason why I mainly buy support areas Okay Um I did buy it a couple of weeks ago Already so I didn't buy this one because The price was very similar didn't see The point in buying again And I moved up my stop loss yesterday I Mentioned that in the video after we now Made a higher high and so far it's Working out so my view is that there is Upset potential still yeah the market is Purely playing out the elite wave Pattern here at the moment This is going to be valid as long as
We're holding the 1100 level below 1100 I think we're going to make a new low First of all to a thousand dollars and Maybe lower Term support is very important as well What is the short term support so the The level below um which this particular Pattern will get invalidated in the Short term That is here 12 15. The wave too low but actually already We are if we say we are now in this White Wave four We should in this pattern not drop below 1247 that's the 50 Fibonacci retracement Level so 1247 is the short-term Invalidation point If we lose that level 12 15 And then we've got here 1200 1180 1100 below 1100 that's the most Important one the most relevant one Below 1100 my view is that we are Probably going to make a new low Okay so if we now say we are in this Third wave Been saying I think for a week now that The target would be around the 1400 Level that hasn't changed Um but we need to understand where are We in the process of this third wave So First of all I think we've created here A wave one to the upside we've come down
In a wave two in yellow We then broke through here in this third Wave I think the third wave Is still ongoing we can See if it gives us a proper Target for This third wave In yellow Target would be around 13 15. I think that's a very very viable Target Focus or this means Translate it into a language If We Hold 1250 now 12 1 2 5 0 If We Hold that because that is Way Forward Validation point then we should reach 1315 next From here we can expect a wave 4 shallow Retracement and then to reach here the 1400 range maybe the high 1300 range for Wave three yeah we can calculate the Target much better as soon as we know Where wave Um 4 here in yellow bottoms that depends On how high does Wave 3 go so we'll use These waves to calculate the target for The next wave but this is sort of where We currently are Um those two moving averages here are Still sort of in a bullish cross so no Reason to assume this is going to change Here we're currently moving sideways It's perfect for a wave four it looks Perfect like a wave four Doesn't look like Wave 4 is over yet This could become some kind of a Triangle or maybe one more leg down no
Problem but as long as we stay above 1250 that's fine and then we can Continue to move higher we have nice Volume as well so what can I say it's Playing out and this doesn't necessarily Mean that we are in a bullish breakout Pattern but it means that we're at least Playing out a five wave move to the Upside here that would be my expectation Um is it guaranteed no but I think it's Highly likely As expressed in previous videos and um We're now in this next resistance area Here so I've mentioned a few times this Is not the target this is purely Resistance resistances are to be seen as Separate from targets Um but they provide here just resistance That's what they do so this is the area Between 1270 1290 so breakout above 1290 Would very strongly signal that we are Heading higher here to around 13 15. Okay and that's my update about ethereum 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 Thank you