Foreign Welcome to another update video about Ethereum so well we we do go up a little Bit here already Um which is Something that you have to expect when The support area is reached in this case The 50 Fibonacci retracement level which Is enough for wave 2. however It was if this really was an ABC and I Mentioned to you it's a it's a little Bit unclear to me if this was already an ABC Um It was a bit short that c-wave I would Have liked it to be a bit longer if we Already break out from here which is not Guaranteed yet because at the moment Again we haven't got five waves yet That's what we need to see we could say And that's what I mentioned in the Previous video this could have been a Leading diagonal Um and the wave two down but it was Obviously not high confidence not as a Leading diagonal because this was not Really an Impulse well we would now need To see a Wave 3 finish Wave 4 support And wave 5. and then we could be more Certain that a low indeed has been made Um I told you earlier that the first Indication that low has been made here In Wave 2 is a break above the B wave That hasn't been done a small week above
It doesn't really matter we need a Substantial breakout above the B wave High which is here at 1278. you can see That this is exactly the current Resistance level so we're currently Hovering just below it what we need what We need to see is now that the third Wave is done for the third wave we Ideally need to see the 1.618 extension Surprise surprise that's exactly where We are the 1.618 extension so we could Currently say that this is a wave one a Wave 2 and a wave 3. however it could Also just be an a wave a b wave and a c Wave yeah very important to understand That because until we see five waves we Can't really confirm that a low has been Made This could be and you know you often get Um You know if we say we are we this was a Wave two yeah it could it could be But you expect then five waves to the Upside to follow If you don't get them and if the chart Fails here if the Bulls fail here what Could it be then it could be a so-called W x y pattern yeah and then we come down Still lower so at the moment I cannot Confirm to you that this Wave 2 was in Already and that we already moving Higher let me just move that across here Um I mean the trend expectation is still Up short term
Yeah so obviously the trend can go up or Start to reverse back to the upside when It wants to especially after it hit our Support area but as I said the move down Was not ideal yet in my opinion ABC Possible C-wave was a little bit short y was a Little bit short because this indeed was An a wave this was a b wave what did we Reach we reached really only the 61.8 Percent extension that's the very first Support level or the very first Target For a wave C you don't see it very often You normally see the one-to-one ratio That would have been here at 12 48 which Would have been perfectly at the same Level as the 61.8 percent Fibonacci Retracement So that would have been an ideal level Going up already now is of course Possible because we hit the 50 FIP Retracement we hit the support area However we only touched it Um but because the wave C is very short I'm a bit skeptical and sometimes these Patterns when you get an ABC and the C Wave is a bit short or there's a slight Error in the pattern yeah And you start to move up then but you Only get three waves This sometimes morphs into a wxy pattern Which is a more correct or more complex Corrective pattern which consists of an A wave a b wave and a c wave another a
Wave a b wave and a c wave and another a Wave B wave C wave so it's a more Complex correction I wouldn't be Surprised to break down from here but What does the chart need to do to um Fulfill the bullish five wave move Structure now well what we need to do to Confirm indeed a low has been made Is Let me take the wxy out it's it's Something we need to have on the radar Um I think you need to understand at the Moment it's possible to ready from here Now yeah which obviously was possible Earlier today already since we've hit The support area yesterday Um But as long as we only have three waves There's this significant downside Potential due to the lack of the length Or the short length of the C wave that's Not ideal and if something is not ideal You always need to have on the radar Okay this is by no in no way guaranteed Yet to play out to the upside so um Wave one two three what we need to do Now and I give you the key support area Now for the Wave 4 because this isn't What it needs to hold I mean you can see We've got we've got five waves up now in The wave three and we reach the 1.618 Extension so all of that is fine Um You can say that we had here
Basically here you could say the one two Three four is a triangle and then the Wave five yeah What we now need to do if if this is top Now which which it certainly could have Because we reached resistance and we Reached 1.618 extension We need to hold Wave 4 support where is That support let's assume we've topped Now then we should now avoid We should now avoid to drop below 1269 Okay So we can certainly come down a little Bit more we can come down to 1274 to 1269 that would be the support Area for wave 4 that we need to hold Ideal retracement is 12.72. yeah that is Where I would like it to go to ideally But we should not drop below 1269 first Of all it would then retrace more than 50 percent which is not ideal for a wave Four and also we get very very close to The wave one so real invalidation will Be at 1268 Um because that is when we cut into wave One yeah that's currently where we are So and if we hold the way for support Area then wave 5 Target what would be The target for the wave 5 well Bear in mind this would be most likely Then if we get a fifth wave this would Be the first wave of the higher degree Third wave Just to to get an understanding of where
We are here and for that we take a Length of the wave one I I don't I can't really calculate it Yet because I don't know yet where Wave 4 will end but let's say it goes down to 1272 which is the ideal retracement then The target would be either 1283 that's The first Target Or 1290 that's the second target so Between 1283 and 1290 and that's where We are and I mean all of this is sort of Embedded in the larger bullish pattern We've got a bullish potential here Um And it's surprising that we see a little Bit of movement here on Saturday I mean It's good yeah at least it keeps it Interesting but I would have thought Today is rather quiet day maybe tomorrow We see movement but if we already see it Today fair enough the Bulls need to move Here or the Bulls want to move here so You can see that this fractal currently That we're doing here Um This year looks very similar to what we Did here and that's no surprise because If it's a one two three four five Pattern it should move in similar ways So in summary we have a potential we Have certainly um potential to move up From here now we hit the yellow support Area we did hold it which is great we Only see three ways to the upside at the
Moment though so there's still a risk to Break down in a wxy pattern however if We now come down and hold the yellow Support area that I showed you here the Small yellow support area then we have a Chance to Rally in a in a fifth wave Here And if we rally in the fifth wave that Would Um give a really good indication that The low has been made here and this Wave 2 again and that would mean this will Probably complete the next wave one and Then we come down in another wave two And we'll then move up in the way three Of three and that is the moment when we Will most likely break through this Resistance level here yeah so this wave To the upside is probably not going to Break straight away resistance there Will most likely be another retracement Let's see but I have to tell you as well That this Wave 3 that we did here yeah When we moved from 12 25 to 1290 that Reached the 3.618 extension so this Wave 3 was very very long something similar Happens here as well we might break it Um but yeah clearly the trend is still Up the short-term trend is still up for Me Um again as long as we're holding here This larger yellow support area which Goes down to 1236 so ideally we hold the 12
Um 12 what was it here the um the yellow Support area here for the Wave 4 at 1269. yeah this is sort of the lowest we Should go if we go below it we're Probably in the wxy pattern which would Be further confirmed if we drop below 1260 the wave too low and then we could Drop down all the way to 1236 as long as We hold that we are still in the broader Short-term bullish wave pattern okay and 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 Thank you