Ethereum / Bitcoin Today's Analysis

ETHUSD to enter large leg 3 impulse driven by reversal on ETHBTC

The title says ETHUSD 3.43% , but the charts are ETHBTC. Keep on reading as that's intentional, I am bullish on BTC -0.57% , but I think ETH will out perform it through to end of Q1 2018.

Etherum has been getting hammered by BTC -0.57% the past 6 months. But things could change over the coming week. The TA on both ETHUSD 3.43% and ETHBTC back up a big third leg coming up soon, and as we know, the third legs are often the longest and most vigorous.

Looking at the Monthly chart (bottom right) we can see ETH started leg 1 of a monster wave in January of this year. That spiked in June and has entered a prolonged correction under leg 2. IF leg 3 starts it is likely to be longer and go further than leg 1. We can see the purple dotted arrow which matches the projection and length of leg 1. Extending this takes us to around 0.245 by June of next year. As a sense check, that would take ETH to around 5000USD if BTC -0.57% remained at its current level.

On the weekly chart (bottom left), we can see that ETH has been in a parallel downward trading range (green + dark blue) since July but is also meeting resistance from the light blue line formed from the June high. The breaking of this light blue line will be the first indication that a reversal could be on the cards. Breaking through the dark blue line would be a clear and conclusive signal of the reversal.

The daily chart (top right) show we are entering leg 3 of a minor wave (orange) that started on 8 December, where ETH met the bottom green resistance line and bounced back. IF we are in the correction, this leg 3 should be larger than leg 1 and would take us through both the blue resistance lines. This should happen in the next week but may take longer.

The hourly chart (top left) shows we have been in a consolidation trading channel of leg 2 since 15 Dec. ETH may start pushing against this channel in the next few hours.

I wouldn't suggest buying ETH vs BTC -0.57% as I'm bullish on BTC -0.57% . Buy aganist USD. However, this chart helps us understand where the signals are and potential entry to USD. I also expect a lot of you have money sitting in BTC -0.57% , so it's good to understand when a switch from BTC -0.57% to ETH would pay dividends.

Depending on your risk profile, there's 3 entry points for this trade and each also become a potential profit taking area for the previous, with the final target of around 0.065 which would be 1,300USD if BTC -0.57% stays around 20,000USD (although I expect BTC -0.57% to go up and so the ETHUSD 3.43% levels would be higher).

S1: Breaking the current consolidation trading channel of leg 2: 0.041
S2: Breaking the light blue trend line from the June high : 0.045
S3: Breaking the dark blue trend line from the parallel downward trading range: 0.053

I'm personally already long on ETH but will look to add in more at each of the signals above, with the bulk going in on S3 as this will be firm confirmation of the reversal and that the downward trading range of leg 2 is over.

With leg 4 and 5 complete in Jan, we would be looking at Jan ETHBTC at 0.072. The following show what ETHUSD 3.43% would be at with various BTC -0.57% values:

10,000 720
20,000 1440
50,000 3,600

ETHBTC 1800% Profits LONG TERM

It is expected to reach 70% of Bitcoin -0.61% value by Sept of 2018.

Smart contracts is going to rule the new coins tecnologies in 2018.

Expect to see Etherium technology being largely used in 2018/2019.

Hope you get amazing profits 2018!