ETH / USD Technical Analysis May 16, 2018

It looks like we have or soon will be ending the correction of Ethereum now. Upon close wave analysis I believe that there was a wave failure at point X creating a WXY Double Zig Zag with an Expanded Flat as the 2nd ABC (Red).

We don't know for sure if it's finished yet because we have not seen an impulsive wave to the upside yet. In which case it could be a Triple Zig Zag correction. Because of this you should be laddering in your buys and leaving a portion of cash on the side in case ETH does retrace further.

Long Term View

Longer term I project a target of $1,800 ETH upon completion of the 5th wave. ETH looks very bullish especially if we are seeing a relatively shallow retracement of wave 2 (Green) right now. Because typically the wave 2 retracement is very deep in the cryptosphere.

Furthermore, ETH has outpaced Bitcoin so far this year in terms of percentage gained. Therefore, I have slightly more of my USD to crypto trading in ETH. I expect it to outpace Bitcoin this year.

Note: If I'm long term investing in a coin I will hold a portion (10 - 25%), preferably in secure storage without trading them.

Disclaimer: This is my personal technical analysis. You should not trade cryptocurrencies without taking full responsibility for your own decisions. I will NOT be responsible for any loses you may have incurred based on my TA. Responsible money allocation is key to not gambling all your investments on one or a few trades. I am now a professional trader but am still learning the hard knocks and realities of swing trading full time. I take responsibility from my own decisions, so should you.