Last week we warned to be very cautious with crypto and Ethereum specifically. That’s not because we were bearish. That’s simply because ETH was trading at a pivotal point, and there was hardly any support until the 1000 to 1350 USD area. In the last few days ETH has shown resilience, and that’s a good first sign. Former support is now resistance, the jury is still out, but Ethereum’s profile is slowly improving.
It’s pointless to try to outsmart a market.
It’s pointless to be sad if a market goes up and tell yourself ‘you have bought at that lower point because you now lost x or y pct’.
This is typical behavior, especially among participants in crypto markets. It doesn’t help, it’s not constructive, it leads to inner conflict and confusion.
It is so much smarter and balanced to give a market some time, especially after an epic decline, and simply wait for a double bottom formation, also called a reversal.
It *might* be that we have a reversal on Ethereum’s chart. Still very fragile, still early, but there is a possibility of an improvement.
The good news: 1750 USD did hold on a 3 day closing basis. That’s good, but it’s not sufficient. If this market weakens it may still fall below 1750 USD. The opposite is true as well: if the ongoing reversal respects key levels like 1750 USD and 2000 USD it will be creating a solid foundation.
It’s still early, crypto markets are fragile, but the first signs of a stabilization and foundation are set.
We don’t advise our premium members to go all in, on the contrary. Our point is to better wait a little longer, and be nimble. Also, keep positions relatively small until we see a more constructive profile especially in BTC.
This next week it will be important to verify what BTC does in the 33.3k to 35k area, and equally important is Ethereum’s 2271 USD level (will it close for 3 days above it or not)!