ETH/USDT: Short Term Elliott Wave Count Analysis 15m (Jul. 27)

X Force Global Analysis:


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In this analysis, we look at Ethereum's 15 minute chart on its Tether (USDT) pair to assess its next potential move.

Analysis

- Firstly, we can see that Ethereum is trading within an ascending parallel channel, a sign of bullish momentum
- Unfortunately, however, prices are creating higher highs, while the Relative Strength Index (RSI) creates lower highs
- Based on our Elliott Wave count, after seeing a corrective wave in play (ABC), we are currently in the midst of an impulse wave count (12345)
- With the Moving Average Convergence Divergence (MACD), we could potentially expect a bullish move to play out to the channel resistance
- This would validate the current bearish divergence of prices forming higher highs while the RSI forms lower highs
- Ethereum has been trading above the 100 Simple Moving Average (SMA) for an extended period of time, and a break and close below this moving average could provide further confirmation of a trend change.

What We Believe

While Ethereum has had a nice rally, based on Elliott wave counts, we expect Ethereum to reach higher highs within the ascending parallel channel for the immediate term.

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