In our latest Ethereum analysis in the public domain we concluded that the Ethereum price may start the next major move in October 2018. That was under the assumption that Bitcoin would not break out between now and October 2018, and that Ethereum would continue to trade in its trading range. However, given the latest trends in the crypto market it might be that Ethereum is closer to the start of a new bull market than anticipated.
This is what we wrote a couple of weeks ago:
If the ongoing pattern that is unfolding will complete … it will provide strong support around the 300 USD area, and it will be complete by October 2018.
Are we saying this is the scenario that will play out? No, nothing is sure in markets, and there is certainly another scenario that seems possible. Based on our latest Bitcoin At Crossroads: Flat Price Until The Start Of A New Trend it might be that Bitcoin starts acting strongly if it breaks out of its falling channel. Particularly, once it breaks out of the $7100 level, we might see a bullish period start again. Whether this will happen, short term, remains to be seen.
The point is this: Bitcoin, so far, has been the leading indicator for cryptocurrencies. It has lead cryptos higher at the start of strong rallies, but it was also the first to top out. In other words, it is wise to look at Bitcoin in parallel with Ethereum for an Ethereum forecast.
The whole point is of course that Bitcoin broke out in the meantime as said in Crypto Market Breaks Out. InvestingHaven Flashes A Buy Alert.
This may suggest that Ethereum will not fall to the 300 USD area at all. It may suggest that the bottom was set early June in the 400 to 450 range.
If this is accurate then the pattern seen on below chart is in place. It would suggest that the trend line at 450 USD will provide ultimate support. Once above 550 USD it will be an amazing breakout in Ethereum, which would not be unsurprising as Bitcoin already broke out in July of 2018.
Note, Ethereum is less than 20 pct removed from this mega breakout on its chart. A couple of strong days in the crypto market suffice for this mega breakout to occur!
The crypto market is becoming very interesting. Right at a time when literally nobody is looking at crypto we become super bullish.
Stay tuned.
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