It’s a topping pattern in Ethereum, and it’s being confirmed today. The crypto market crushed our bullish crypto predictions for 2021 which implies that the market has to digest those phenomenal and astronomical prices. Whatever goes up must come down before it can rise again. Ethereum and the entire crypto market strongly up this year, comes with a strong move down. And those that argue that ‘crypto already corrected 40%’ should know that whatever is falling can continue to fall as long as it is a downtrend.
We are no perma-bulls, we are no perma-bears, we do love crypto but we don’t want to be biased. In the end we are here to help our crypto premium members get better. That’s because our mission is to help our members realize their dreams by being among the 1% to 10% most profitable market participants, as per Tsaklanos his 1/99 Investing Principles.
With that said we look at the Ethereum chart, we add a few annotations in the form of trends and patterns, and we go like “oups”. Clearly, Ethereum has its oups-moment here, and it is starting today.
Ethereum is now below its 6 month rising trend channel, and is moving in a topping pattern, one that started in April and peaked right before the crash on May 18th, 2021.
You don’t need a PhD to understand that the current topping pattern is about to conclude at the end of this month. No coincidence, July 1st is when a new 3 month cycle starts in crypto markets, as per our cycle count.
Whatever happens in crypto markets and on Ethereum’s chart in the coming 2 weeks will be telling. One thing is clear though: this chart turned bearish, and will be bearish until proven otherwise.
We believe crypto investors will be able to pick up Ethereum between 1000 and 1400 USD in the not too distant future. This forecast is invalid in case 1750 USD holds. So the line in the sand, for Ethereum, is 1750 USD. A break below it will open the door to prices around or right above 1000 USD. It might be that 1000 USD is only touched briefly, like a few hours before rebounding strongly.
Whatever crypto investors do this is not a time to be heroic or outsmart the market. This is a time to watch the market, see how it behaves around critical price levels and only plan accordingly. More watching/planning, less acting, until proven otherwise.
Our premium crypto members will be the first ones to know when the crypto market turns bullish again. Between now and then we will ‘coach’ our premium crypto members in becoming better investors by ‘training’ them on discipline by being patient. Because there are 2 ways to make money as an investor, particularly a crypto investor: being invested when there is bullish momentum, and being sidelined when there is bearish momentum (or when bearish momentum is underway). In the meantime our NFT Telegram which is exclusive for our premium crypto members contains tons of insights on NFT investing. You too can join us on this crypto journey.