ETH Daily: Contracting Triangle Nearing Completion – Downside Br

Pattern Overview

Textbook five-wave contracting triangle (A-B-C-D-E) fully formed
Price compressed between converging trendlines – coiled spring ready to release
Volume steadily declining into apex – classic pre-breakout signature
Multiple indicators point to downside resolution

Technical Analysis
Elliott Wave Structure

Clean 3-3-3-3-3 corrective sequence confirmed
All waves respect triangle rules: C < A, D < B, E < C
Converging boundaries create pressure for explosive move

Timing Analysis (Neely Method)

Triangles complete within 60-80% of A-to-apex timespan
ETH now sits directly in this critical window
Resolution expected within 4-6 weeks maximum

Price Projection Methods

Largest Wave Rule: Thrust often equals biggest internal leg → Target: $1,350 then $900
Minimum Line Rule: Must exceed lowest triangle point (~$880) for valid thrust
Fibonacci Extension: 0.75-1.25x of C-D height → Extended targets: $750-$300

Key Levels & Targets

Support Break: Pink trendline (see chart)
Initial Target Zone: $1,200-$900
Extended Targets: $600-$300 if momentum builds
Invalidation: Close above upper resistance line

Trading Strategy

Entry: Daily close below rising support line
Target 1: $1,200-$900 (confluence zone)
Target 2: $600-$300 (1.25 fib extension)
Stop Loss: Re-entry into triangle after breakdown
Risk Management: Small position size, use trailing stops, monitor ETF flows

Market Context

Triangle maturity suggests imminent resolution
Volume expansion will confirm breakout direction
Watch for macro catalysts that could accelerate move
ETF decisions and regulatory news remain wildcards

Action Plan

Triangle has exhausted time – breakout window is NOW
Technical evidence strongly favors downside
Wait for clean break with volume confirmation
Prepare for potential cascade to three-digit prices
Stay disciplined – let the market prove the direction

the_batman

Disclaimer

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the_batman