RSI showing bearish divergence with a lower high on the while price action shows a higher high. MACD is also showing signs of weakness. There was an unconvincing break above the previous high of $224 which has formed an ascending wedge, and this along with decreasing volume paints a grim picture.
We've seen this with bitcoin before after the sharp rally from 6k to 12k which culminated in an ending 5th wave diagonal and a dramatic break down and I believe what we're seeing is an ending 5th wave diagonal in ETH which, according to Elliott Wave, always breaks down at least to the point of origin
I plan to ladder shorts from the 0.382 to 0.786 fib extensions of wave 3 ($228 - $234), after that a reasonable point to start taking profits will be at the point of origin ($204ish). Stop loss set at $238.
We've seen this with bitcoin before after the sharp rally from 6k to 12k which culminated in an ending 5th wave diagonal and a dramatic break down and I believe what we're seeing is an ending 5th wave diagonal in ETH which, according to Elliott Wave, always breaks down at least to the point of origin
I plan to ladder shorts from the 0.382 to 0.786 fib extensions of wave 3 ($228 - $234), after that a reasonable point to start taking profits will be at the point of origin ($204ish). Stop loss set at $238.