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2019-10-18 16:51:23
Jacob Fisher

Editor

2019-10-18 16:51:23

Ethereum entered the phase of market "disbelief"?

The Wall Street Cheat Sheet information resource is known for its popular chart, reflecting the emotions and moods of traders who own one or another asset - for example, Ethereum (ETH). The graph shows the change in these emotions depending on the market cycle, at its peaks and downturns.

The Wall Street Cheat Sheet information resource is known for its popular chart, reflecting the emotions and moods of traders who own one or another asset - for example, Ethereum (ETH). The graph shows the change in these emotions depending on the market cycle, at its peaks and downturns.

The Wall Street Cheat Sheet information resource is known for its popular chart, reflecting the emotions and moods of traders who own one or another asset - for example, Ethereum (ETH). The graph shows the change in these emotions depending on the market cycle, at its peaks and downturns.

The chart includes both positive emotions that accompany the market run to the top, and negative ones that appear in the process of falling and finding the bottom.

If we apply this template to the Ethereum exchange rate, we can assume that the maximum recorded in June 2019 was part of the phase of denial or “disbelief”. This means that the market has just begun a new cycle. If these assumptions are true, then in the next two years we can expect a significant increase in prices.

Bitcoin Jack, a crypto trader and analyst, has posted on Twitter a Wall Street Cheat Sheet template applied to Ethereum's price dynamics. As you can see, the movement of the cryptocurrency corresponds to the pattern shown on the template.

For the convenience of our readers, we will duplicate the image from Twitter with a similar full-size graph that displays the dynamics of the Ethereum course since 2017 and all the emotional stages of the market cycle superimposed on it.

 

 

Judging by the schedule, we are now moving away from the “phase of unbelief." If this growth continues, the market will have to peak in the “Hope” phase.

Since this pattern is repeating, this trend should coincide with the price movement in June 2017.

The use of the RSI index, which is an indicator of momentum, can indirectly confirm the movement of the Ethereum price within this market cycle.

In December 2016, for the first time in its history, the RSI index was in the oversold zone below 30. In December 2018, it also showed similar results.

 

As for the upcoming maximum, here we can only make the most approximate assumptions, based on the size of the bullish price movement during the previous cycle.

 

During the growth phase of 2016-2018, the Ethereum exchange rate rose by 19500% over 378 days.

 

If we assume that the price will show a similar increase, then the next maximum may be the area of ​​$ 16,400.

In order to somehow narrow in our forecast the potential scale of possible price movements, we introduced a resistance curve as a limiter.

The graph suggests that the maximum should be reached at some point after February 2020.

In addition, it should be noted that while the previous growth phase developed over 378 days, this time everything can be slower, since the growth rate of the logarithmic curve has now slowed down.

And in what phase of the market cycle is Ethereum in your opinion? Share your comments with us.

 

Disclaimer: This article is not a trading recommendation and should not be construed as such. Always consult with qualified finance professionals before investing in cryptocurrencies, as this market is characterized by increased volatility.

Charts and images provided by Twitter, TradingView.