Foreign Welcome to another video about ethereum It's a really really tricky space to Read at the moment Um we continue to have this massive Inverse Head and Shoulders on the chart Left shoulder head A right shoulder remember down here we Also had a small inverse Head and Shoulders which did break to the upside We had here a left shoulder a head and a Small right shoulder that broke reached Target so let's see if we can also push Higher here the overall Target for this Inverse or very large inverse head and Shoulders I think if I'm correct it Would take us to around 1500 dollars but To get there yeah it does but to get There we need to finally break Above This resistance area above the so-called Neckline we're talking about the 1305 level yeah one 305 roughly to be Very exact it's 1 308 to break the Previous High Um so there is some bullish potential Still here in the chart short-term Bullish potential Um but we also have two scenarios that Point towards a further downside and the Problem with this structure here is it Leaves a few possibilities open yeah so Generally ideally what we're doing here Ideally we're pushing higher that would Fit best into the overall wave count
Into the proportions of it of an ABC Structure with a up with B down with C To the upside and wave C in five waves However as I explained to you in Previous videos We could have a top in place here I Warned you already when we reached that Top that we could have a more Substantial top in place that was Related to the idea that we have a huge Resistance area here very strong plus The view that we have three waves to the Upside complete we have enough waves to Consider that we have not an ABC Structure but a w x y structure and in a W x y Or you can even count it from here wxy In a w x y We have done enough we don't need to Push any higher we could without a Problem break down from here yeah so Therefore I become very careful here in This region So Where else what what are we doing so the Main chart which is still sort of the Count here that I showed you yesterday That still shows a wave one up a wave Two down to around 1150 It would assume we are now in a third Wave there will be a fourth and a fifth So it just shows you the upside Potential that there still is However I'm going to show you as well
Until which level yeah can ethereum go Down and still have a good chance to Rally in this impulse because in the Wave 3 in yellow We are based on this wave count in this Structure one already done Wave 2 Possibly unfolding now there should be a Three four and five still coming so this Is the ideal structure that is still Unfolding here that we talked about Yesterday as well Um the problem is there's different ways How we can get there So the first Idea Would be that the Wave 2 was already in Here yeah And that we have moved up in a wave one And we're now coming down in a wave two I don't really believe that anymore and The reason for that is That the move down came in five waves so It's very unlikely that that this is a One two setup Because the way this would need to work Is as follows Wave one up Oops Wave one to the upside in wave three Yeah wave two down wave three up four Down five up so we would have to have a Small five wave structure unfolding now The problem with that is again we came Down in five waves here of the high
Yesterday and If you look at the retracements So We broke briefly below the 1250 level Okay not not substantially So it's actually fine but the move up is Not really impulsive yet so It's okay to watch it and we need to Consider it and if we break above 1308 I Will have to go with that scenario that We have a one two another one two and We're now rallying in three Target for this most imminent bullish Scenario which I hope I don't find very Likely Target for the third wave Would be 1360. so that means very simply If we break above 1308 in the very first Instance we should break to 1360. So irrespective of if I believe this is Viable or not or likely We are now in the fortunate position That we have pulled back deep into Support We are very close to invalidation point So a long trade can be entered with low Risk not necessarily low risk in terms Of it's going to work out but low risk In terms of You're basically risking a few dollars For Uh what is it 90 to 100 isn't it profit Okay risk to reward is quite attractive Here at the moment
The other scenario is that Wave 2 is not Finished that this is an a B C structure Um we would then come down a bit more That would become very very likely if we Drop below 30 at 12 38 It would already become very likely if We break below the most recent swing low At 12 48 and then 12 38. And this is a scenario where we could Say we're coming down in a c wave I can calculate the target for that as Well First Target okay that's not that we Already reached that Key Target here would be 1191 the 1.618 Extension In a deep wave too now Um this is also if I look from the other Way around if I look at the Fibonacci Retracements of that wave one This is very close to the 1185 level That I told you before about the 78.6 Retrace because if we drop below that 12 38 level We have one more chance to Rally from 1185. In a way three okay and that is the Point when we come down in this wave C Of two if we drop below that level most Likely we're gonna break down completely Yeah so we've got these two scenarios Where the first one is actually fairly
Unlikely that we really straight away But of course possible but in my opinion Fairly unlikely this one is more likely That we come down in a c wave because we Came down in five waves already And the other scenarios of course that The overall uptrending structure is Already over that we're not getting all Of this up there And that we're completely going to break Down from here we will not know that Until we break below 1185 below 1185 This will become very unlikely very very Likely that we're gonna go down and Probably retest the one thousand dollar Level okay so 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 Thank you