Ethereum Elliott Wave analysis for 22/01/2019:
The breakout to the downside continues
The wave 4 corrective pattern in the form of the triangle has been completed and the price has broken below the lower Triangle trendline already. Currently, the price is consolidating in a narrow range between the levels of 110.58 - 116.46, but the breakout to the downside is coming as another wave down is about to unfold.
From the Elliott Wave Principle approach, there is still another leg down to be made in form of an impulsive wave 5 to the downside. The projected target zone is seen between the levels of 100.15 - 98.80, but first the technical support at the level of 108.46 must be violated.
The larger time frame trend remains bearish on monthly, weekly and daily time frame charts, so the bears still have control over the market. This is why any upside price developments should be considered as a local correction in a downtrend only. Technical levels to keep an eye on are: support zone between the levels of 108.46 - 109.37 and resistance zone between the levels of 124.61 - 127.59.
Recommendations:
The downside cycle has not been completed yet and there is still a chance for a lower price when the triangle pattern is finally completed. Short positions should be in play as long as the level of 127.59 is not clearly violated. Targets for bears are seen at the level of 109.37, 108.46 and in a case of a further sell off - 100.15-98.80.
