Ethereum has been one of the most capitalised coins that has risen the most since the last month of May. In less than 1 month it rose from $150 to $288. Incredibly, it almost doubled. It rose 93%.
Since it made its one year maximum at almost $290, it has been trending down, as most of the crypto market. This pull-back is considered for the crypto community as the healthy correction that the price had to perform to consolidate the exponential increases that the crypto market cap suffered during May.
Now we should wonder, how long is it going to last? Is it a consolidation process or we just had a temporary bull-run?. Let´s see:
1. How long is it going to last?
The current pull-back is lasting 10 days already. If it is going to last longer or not depends on the market volume. If we see volume accumulations in together with sideways price movements, this means that investors, especially institutionals, are preparing themselves taking long positions in the market for future rises. Then, we have to keep an eye in the supports, as depicted in the chart, and once we spot these areas get ready to open new positions.
2. Is it a consolidation process or the end of a one month bull run?
Seeing at old patterns for Bitcoin and Ethereum, there are no reasons to believe that bull runs last only one month unless they are inside a major trend (then they would be retracements, no bull runs). Since the ongoing downtrend was broken in late April beginnig of May, very possibly there are no signs of the strong bearish trend we had in 2018.
Ethereum is nor being supported at $230 and could fall to the next support at $225. That support has had a lot of volume in the past, therefore will be a solid one and could push the price upwards to the monthly maximums at $290.
Key factor to open new positions: volume and support.
The Copilot
Since it made its one year maximum at almost $290, it has been trending down, as most of the crypto market. This pull-back is considered for the crypto community as the healthy correction that the price had to perform to consolidate the exponential increases that the crypto market cap suffered during May.
Now we should wonder, how long is it going to last? Is it a consolidation process or we just had a temporary bull-run?. Let´s see:
1. How long is it going to last?
The current pull-back is lasting 10 days already. If it is going to last longer or not depends on the market volume. If we see volume accumulations in together with sideways price movements, this means that investors, especially institutionals, are preparing themselves taking long positions in the market for future rises. Then, we have to keep an eye in the supports, as depicted in the chart, and once we spot these areas get ready to open new positions.
2. Is it a consolidation process or the end of a one month bull run?
Seeing at old patterns for Bitcoin and Ethereum, there are no reasons to believe that bull runs last only one month unless they are inside a major trend (then they would be retracements, no bull runs). Since the ongoing downtrend was broken in late April beginnig of May, very possibly there are no signs of the strong bearish trend we had in 2018.
Ethereum is nor being supported at $230 and could fall to the next support at $225. That support has had a lot of volume in the past, therefore will be a solid one and could push the price upwards to the monthly maximums at $290.
Key factor to open new positions: volume and support.
The Copilot