ETH/USDC - Following the recent sharp drop towards 2100, ETH is expected to recover towards 3240
Market & Ticker: Ethereum – ETH/USDC
Date: 26/08/2024
Horizon / Timing: Tactical Mid-term / 1 to 3 months
Scenario:
The Ethereum – ETH/USDC remains stuck within a wide descending trading range pattern Since March 2024. The recent macroeconomic statistic in the US is now leaning towards an imminent US rate cut a head of the next FED rate decision expected for 18 September 2024. This is the key macroeconomic factor to engage a new robust upside trend on risky asset class such as crypto market and ETH.
This consolidation is expected to end between Summer 2024 and November 2024 a head of the US Rate cut decision from FED following by US election and new regulation frame in Europe (MICA).
Last week, ETH rose towards 3040 without reaching this first target while BTC achieve its move towards 65 000 - Note that only BTC benefits a strong outperformance versus crypto market for the time being calling for a further underperformance of the ETH.
At current price we are focus on 2390 Key support to develop a further recovery towards 3040 and 3240 max
Technical Key Elements:
- RSI indicator remains negative below 50%
- The Moving average are resistance
- Fibonacci key resistance area at 3040 and support at 2390
- Elliot wave pattern is jeopardized with 2 consolidation scenarios (wave 4 or potential wave 2)
Trade Idea conclusion: (buy)
- Tactical Bullish target Max: 3240
- Tactical Bullish target: 3040
- Tactical Pivot: 2390
- Tactical alternative bearish target: 1790
Chart: Daily Basis (Candle Stick) - Logarithmic
Indicators: Exponential Moving Average (21/34/89) - RSI (21)
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