(+) Ethereum Smashed Expectations

Ethereum set a new ATH yesterday.  When I first published last week’s forecast that ETH might double from $17 to $35, I was a bit incredulous.  I was almost embarrassed to point out that one of my setups was forecasting $45. ($45 turned out to be the closing high).

Yet, we are looking at $51 now, and until this morning there had not been a red daily candle in 8 days (a Fibonacci number) when price had closed at $16.

This brings us back to the age-old question: “What’s next?”

Let’s look at the daily chart:

I had to adjust my scale to get a usable setup that made sense.  But here we see that the rally closed at the 5^th arc, opened there, then blew past the top of the setup before reversing, violently. It is hard to see, but the intraday low was stopped by the 4^th arc pair.  No doubt the magnitude of the fall was exacerbated by a ruthless combination of short selling, panic, stops and margin calls.

So, is that it? Probably it is over for a few days at least.  So many traders lost the (paper) profits they had accumulated over a number of weeks in just a few minutes.  It will likely take them a few days to recover from their shell-shock and self-loathing.  But my guess is that the market will resume and reach new ATHs in the not-distant future.  The intra-day spike through the top of the setup above suggests that the (setup) high is vulnerable.

Erik Beann is one of my (still-living) heroes.  He wrote an epic book “Market Esoterica”, which delves into a number of mystical aspects of market action which absolutely defy logic and rational comprehension.  I won’t bother to list them here – most would not accept the ideas anyways.  But one of the points he makes is that price and time are the same thing.  In some bizarre 4^th dimension that we can’t even begin to wrap our heads around, the two are interweaved.

For example, ETHXBT’s previous ATH was on 3/13/2016, at .0370.  That date, one year later, was but one day before the vertical move began.  That’s interesting but not exactly awe-inspiring.  But, the price is fascinating.  If you add the price to the date, adding price (370) to the date, you come to 3/18/2017, which was almost exactly correctly forecasting yesterday’s grand finale.

Hhhmmmm………..

 

Happy trading!

 

Remember:  The author is a trader who is subject to all manner of error in judgement.  Do your own research, and be prepared to take full responsibility for your own trades.