Why i analyze it? The idea of this is to yeah analyze ergo from a more objective point of view. Yeah without any bias, so were going to take a look here at the chart from an elite wave point of view, but also we take a look at support resistance levels, price targets, volume, profiles, indicators, lets start with the overall elliott wave analysis, so we can see That um the ergo chart here um produced a wave one to the upside in may 21, like so many other cryptocurrencies. This was um yet basically its first impulse, which means that this was in the direction of the higher level trend, which means the high level trend is definitely up, which is positive, because the alternative would be that its going to zero, which we dont hope so overall Impulse to the upside, then it came down in a wave. A it moved up in a wave b came down the wave c. This abc move is what weve seen on various cryptocurrency charts. It is in a wave 2 at the moment, so you can see that down here, a wave 2.. So what you have normally with the elite wave method. Um, you have a five wave move structure, a one, two, three four five and you can already see that we have done here the wave one we probably are sort of towards the end of the wave two. So, basically, on this profile here that ive just drawn, we are basically somewhere here, yeah.

So just before finishing the wave two, maybe we finished it already were gon na. Take a look at that, but then the next wave up would be in the most simple uh pattern would be a wave three, so the wave three would normally be the most bullish wave. So we can calculate the price target for that already and lets start to do that. We start here at zero, because this was the first impulse to the upside. We go all the way up to the high of the wave one. The all time high here was around twenty one dollars and then were going to go down to the current low. This might shift a little bit those price targets for the wave three, depending on how low we are going to go but lets say: okay, we might just keep it, keep it safe. We go a little bit lower than we currently are, and then we would have a price target in a wave three which should be the breakout wave after or in the next bull run. Whenever that might start, timing is very difficult to forecast. That should take us to at least 35 dollars and 50.. That is the minimum target for a wave three prerequisite for that or the absolute need for that is that we make a new all time high. Only then we can obviously reach that target, and then it only then it can be a wave three. A wave three would normally reach the 1.

618 fibonacci extension level of the wave one that is normally the minimum you can expect. It also goes higher. Um next target. Would be 43.50, and maybe even the 56 dollar level now this is definitely a nice return from the current level, however, bear in mind um, it is a more yeah. It is a smaller market cap crypto and especially in the current time. Smaller market cap cryptos are definitely higher risk um, but yeah dont expect this move in a wave three to move in a straight line. It will be up and down, it will be messy and muddy and whatever. So, however, this is sort of the long term target in a wave 3. bear in mind after wave 3, so lets say we sketch it out. 1. 2. 3. You get away 4 to the downside and the wave 5 to the upside. We cannot calculate these yet because we do not know where the wave 3 is going to end. We can make a projection, but um it wouldnt be accurate. So from the what you would normally expect, then if lets say the wave 3 really reaches here that 35.50 level. You would expect um around about in the way, four that the wave three length retraces by around 20 to 30 percent. That would then be sort of the the area uh where we can expect the wave four to reach into, and we can just for fun calculate that here as well.

So that would then take us here sort of into the region between yeah 22 to 18 dollars. Again in a way, four, and then we have a wave five to the upside, which should make a new all time high. So now weve looked at the future projection um, assuming that eric will survive. The current bear market, which i hope it will and assuming it will make a new all time high in the next bull run. So but lets take a look at where we actually are in more detail so wave one wave, two abc within the last wave. We are in the c wave yeah um and within the c wave, a c wave has five waves in the most simple form. Weve got our one two three four five here and we are currently in the fifth wave, so wave four was created here, uh at the sort of peak of the wave four here at five, fifty seven, that was the middle of april or beginning of april, and Then we have come down here in a fifth wave now again, this fifth wave. We can also count again in um in various subwaves. So again you have a one two, three four five, and this is what is so interesting at the moment. So we can label that as well. We had basically here um again, i give it another color. So we can see that that was a wave one moved up here in a wave two came down in a wave.

What i would believe is here wave three. Then we had an a b c and a wave four, and then we have here a five wave move down yeah, and the key question now is you can already see is that is that fifth wave complete, because if it is theres a good chance that we Now start to move higher, however theres a few concerns around that. So if i go to the one hour chart, we might see it in a little bit more detail. So can we count five waves here? I would have my problem with that, so we can certainly count a wave one. We can count a wave two. We can count a wave three. We can count away four, but i cannot really count a wave five because we you know lets just draw it out. One two three four five possible: yes, but i dont know if youve seen my other videos about ada and solana. The problem i have here is that the wave 5 did not go below the wave 3 low, so that is what we would have needed. So the way five should have come below this low so below 1.82. Basically it didnt. Now you can still count this as five waves complete, but its more than um, more of an exception really, because having wave five complete normally means we need to make that lower low in a downtrend yeah. So, ideally, you want to see one more lower low um.

If we count it like that, it would be a so called truncation which would indicate that yeah we cannot. We we dont need that lower low. It is normally happening in an um yeah in a scenario at the end of a wave pattern like in this case, but it would also mean there is so much upward pressure in the market that the wave five just couldnt push to the downside. That much and what we can see here normally, you can justify a truncation count, but only then the price needs to really push up now. This is everything but not pushing up. This is actually a fairly corrective wave pattern, so my primary expectation is that we actually go that we will go below the 182 level and that we will make a lower low. That is currently how i see the market, no financial advice, so that here what we are doing here is only a corrective move at the moment and we will come down once more lower. That is currently what i see. There is a slight chance now that the low is already in because um yeah, we have made a lower low here compared to the 12th of may, but still the very lower level wave count would need another low okay in an ideal scenario: um Music. We can also so this is basically here. The elite wave um count projection. We can cut, we can calculate the target by the way for this fifth wave down.

So we take the length of the wave one and we add it to the wave four high and then a target would be the 100 one to one ratio basically, and that would be at 164. That would be a target if we go below that yeah. The next target would be the 1.618 extension level at 135., so bear that in mind. Should we, for whatever reason, even though i find it very unlikely break out to the upside from first of all, we will need to get above the previous swing high at 2.10. If we go above 2.10, i would find it quite likely yeah that the overall downtrend – or at least i would consider it more seriously that the overall downtrend here is already over yeah. This is a structurally very important level, and it would get much more likely that the overall downtrend is over if we actually make it above this wave for high here, which would be actually at 276., so theres quite a bit of a a way to go until We really can consider that the low is in um, but these are important structural levels, so this would really be um an important confirmation above 2.76, and if you heard about the price targets here in the beginning, then you know that this would still be super. Super early, because if we zoom out yeah look at where we would be, we would still be very, very much in the beginning and then on the way up.

Another structurally super important level would be that five dollar and 50 level of 548. That way, four its always important to cross a buff away, four in an uptrend again um. These are normally very important, um resistance levels so and uh. This is key yeah to go above that level, and then i think we have further upside potential all the way up to here this sort of cluster around ten dollars and 50.. That is very important as well and from here we can then move to the high of the wave b, also very relevant at 19.20, so these are sort of the key resistance levels on our way up. Lets take a look at where we actually are in terms of the um, so we looked at the elite waves. We looked at the price targets um. Where is actually so? We just looked at resistance as well. Where would actually be on the way down, so i gave you price targets for ending that correction, but where would be other support levels as well? So we can do that by adding the vpvr to the chart historical volume so wheres the vpvr lets just add it, and then we can see some volume profiles that will give give us an idea of further support levels. But i dont think there has been really a lot compared to up there, so we cannot really use it for down here, maybe its a glitch in the chart, but then lets take a look at other support levels in addition to the price targets.

I gave you because should we really go below that 136 level, which was one of the fibonacci extension price targets? I just gave you theres further support, so there is support around the one dollar mark. I think that will be psychological. Major support will be the next support level and if we go below that, then i think weve got this sort of swing low here, which will be at um, 72 cents and yeah. Then there isnt much left anyway, so the absolute lowest level that i can see on the chart would be the 35 cent level, but i dont think were gon na get down to that level. This would be really the absolute worst absolute worst case, but i dont think this is in any way realistic. My view is that it should turn around at the latest at one of those price targets. I gave you for ending that wave 5, which would be either 182 or 164. now, as you can already see on the way up, then weve got some volume profiles that we can see here and um theres one at around. These are additional support or resistance levels. Theres one at 245 is one at 325 and theres one around five dollars yeah. So this five dollar one matches pretty well here the 550 level that i gave you the peak of the wave four here. So these are just additional levels to consider on the way up. Yeah. You can obviously use this video when we start to move up as sort of a reminder where those are and now lets, take a look at important moving averages.

Where are we actually in terms of the trend, so you can obviously see here um, let me see which one that is so lets just start with the lets just start with the daily moving average. We start with a with a 200 lets, just say see where that is. You can see here in green, that is the 200 day moving average and yeah. This is obviously we are currently below it. That one is currently at 375 for confirming longer term uptrend. We would need to go above that level that is very important, but its a dynamic level, its coming down at the moment as well. So where is the 100 day moving average, because these are very relevant levels. This is currently at 3.32 theyre, just important levels to be aware of as well right, 50 day, moving average even lower, so that is much closer to the current price action, but its still quite far away. Nevertheless – and i think the this is by the way at 2.41 and the last one i want to have – a look at here – really is the 20 day moving average yeah also here, so we are still in this downtrend without surprise. Obviously, we took a look at that, but nevertheless always important to take a look at the moving averages as well now. Lastly, i would like to take a look here at these indicators, so well start on the eight hour chart, which is already quite um, quite relevant for crypto.

On the eight hour chart, we still see the short signal here. The adx above the red line above above the green line, certainly not bullish. The rsr rsi is starting to rise. It was massively oversold, but its still in the bearish range, so also here, a lack of bullish momentum. The macd is starting to move up on the eight hour and um. This could indicate an upcoming price increase, especially if this will translate over onto the daily chart, where you can see that we might be printing here, bullish crossover soon on the macd. What is very relevant is that we have here – and this is a signal for a potential break out. As i said, we are very close to the low air. It doesnt necessarily need a lower low uh. Ideally, we get one, but it doesnt necessarily need one in the worst case. We can count this as a truncation. Now i gave you the breakout prices for that, the breakout, um resistance levels and, in addition to that, if we have such a breakout to the upside, we can, in addition to that, obviously identify here, bullish divergence where we make higher higher lows on the macd, but Lower lows currently on the price chart indicating that we are close to ending this overall correction, so this is a very important signal. A bullish divergence and a bullish divergence also occurs here on the daily rsi. This is also a sign for a potential um upcoming trend.

Reversal, because what it means is basically that this downtrend is slowing down yeah and in addition to this, you can actually draw here descending wedge, i believe, onto the chart. That would also be an interesting breakout pattern. Um and you oftentimes can draw wedges when you identify here, um bullish divergences, for example, yeah, and this is really what its about um four day chart as well. On the four day chart. We also have a very, very nice huge bullish, divergence on the macd from all the way down here to where we are currently uh, massively lower lows, massively higher lows on the macd. So again, this is very interesting and when this turns to the upside here – and we are not far away from a bullish cross over here on the four day chart – then this could really push um ergo to the upside and could be one of those buy signals Or catalysts that ergo needs um here as well similar story on the weekly chart. Here we are very close to zero at the moment or for crossing these two lines i mean, and if they cross british again, that could also give it a boost. A push to the upside and it could support higher prices. But what is now important in the first instance is to ideally make one more low and then ideally, we see the price just turn around and move to the upside yeah, and that is my view about ergo.