Good day Hiveians!
Join me in analyzing the crypto markets!
If you have followed my take on ETH it seems that my prediction of 4-5k is on a bumpy road.
ETH has been lagging for months now ever since it made a decisive move in early January to break the 1k mark. Paired against BTC it has also underperformed a lot giving away all the gains and is now sitting at a 0.03 ratio. But studying ETH's patterns reveals that it's a slumbering giant. "It" waits patiently only to outperform all other tokens when no one seems to be expecting it. So investors in ETH have had to learn some patience.
The potential for ETH to move upwards is tremendous if one looks at the former cycle. We are still at this crucial juncture that holds potential gains of 10x and beyond. This will happen once we breach the current strong resistance from the upper boundary of the channel:
ETH as other tokens seem to move in waves of three as is evident here:
This implies that a big move is about to happen, so much is clear, but of course the question is: whereto? Looking at the volume for the past three waves of three suggests that it is normal for volume to be down or sideways at the end of the third wave- Once it has moved downward, one upward, so this doesn't hold too much predictive power.
However, let's look at the bullish case, and I'll explain why I am leaning more towards it in a bit. This would imply a strong upwards push to the upper resistance of the channel. There will be resistance and a correction to as low as perhaps 2k, which will then be followed by a further upward push and a break of the resistance. Look out for a strong increase in volume.
Now why do I favor this scenario? Let's have a look at the ETH/BTC chart:
ETH has moved upwards for well over a year now. This trend should be continuing now that we have reached the support of the long triangle coming from 2017. It is also suggested by the A B pattern visible here. The upward moves have always occurred in this fashion: an A followed by a B and then a higher push upwards. We are just about to see the B which would hold a rise of about 30%. Therefore, even if BTC breaks to 50k again, ETH should hold relatively steady and reach out for 2k and beyond farily soon.
As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!
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