“Are we there yet Daddy?” – by The Market’s Compass
In our tweet on the technical condition of Etherium last Friday we suggested that our preferred count was that the rally from the September 7th low was likely only a B wave of an ongoing ABC correction. The price action since then has followed that script and a leg lower has unfolded. Thus far wave C has bounced in the area of the preceding 4th wave and 76.4% of wave A. It is too early to declare that the corrective price action has run its course. We now mark key support at 2,675 where A would equal C which is a common relationship.
Prices fell through support of the Median Line of the Schiff Modified Pitchfork (gold P1 through P3) this morning (yellow circle) in the developing C wave on the 240-min chart. Until there is a turn in the shorter term momentum oscillators the correction has not run its course.