Chart of the day

ETHUSD is reaching the falling wedge support of 1669. A bounce higher from here is required for another test of that upside resistance 2290 for a continuation higher in the long-term fifth wave.

This is still viewed as completing the medium-term fourth wave pullback of the five waves upside long-term as it can be seen on the weekly chart if we get a bounce from here. A break below 1560 is now required for a downside reversal and an invalidation of the possible upside reversal. A break below this level will confirm that the upside five waves are finished.

Long trade, you can open here with a stop loss just below 1560 if you are more risk averse because this is not a clear direction. You can only open short trade entries in the case of a confirmed break below 1560 if you got stopped out. We favor the long trade entries as we expect an upside extension from this strong support at the rising wedge.