The Wave Report #14 - The final domino is loading

Most traders never see it coming.
They chase green candles, miss the big flips, and only realize what happened once the rotation is halfway over.

But right now, Ethereum is showing us the playbook in real time.

1. The $4K flip (ETH 1M)

Ethereum just broke through $4K. A level that acted as brutal resistance since December 2021.

Now the key is simple:
👉 Close this monthly candle above $4K and turn it into support (R/S flip).

• RSI just broke a 3-year downtrend.

• MACD confirmed a bullish cross from deep below zero.

• Price has reclaimed the cycle trendline from 2022.

The last time ETH did this kind of breakout on the monthly RSI, it triggered a multi-month run into new ATH’s.

2. Short-term shakeout (ETH 1D)

Zooming in, ETH looks stretched.

After a massive rally from the April shakeout, the daily chart shows:

• ETH failing to hold above the rising channel

• Stoch RSI printed a bearish cross.

• Key support sits around $3.9K (previous resistance zone), but I see a potential drop towards the $3.5K area which is the 0.382 FIB level.

ETH might cool off before it pushes higher. Don’t panic when it does.
It’s not bearish It’s a healthy pullback action after such a strong run.
It needs to make a new strong base to push higher.
If you’re trading the big waves, this is just noise.

3. The final domino

TOTAL3 (the market cap excluding BTC & ETH) is sitting right below the $1T ceiling.
The same level that capped the altcoin market in 2021.

Price is wedged between resistance and long-term trendline support.
The pressure is building.
Momentum is turning up with a fresh MACD cross on the 3W chart.

But here’s the nuance most miss:

• On the first ETH pullback, some liquidity will rotate into large caps, and TOTAL3 will start heating up.

• The true breakout, however, comes once ETH smashes into new ATHs. That’s when conviction floods the market, retail piles in, and TOTAL3 finally breaks free into price discovery.

Think of it like a pressure cooker: ETH lights the fire, but TOTAL3 is the steam valve. When ETH hits new highs, TOTAL3 blows the lid off.

The bottom line

• ETH’s $4K flip is the green light.

• Short-term pullbacks are noise. Focus on the bigger picture.

• Once ETH cools, the altcoin rotation will go full throttle.

The charts are lining up exactly how they should.
Don’t fade the setup.
The rotation has already begun. Position accordingly.

See you next week,

— CrypFlow