Analysis
Summary: Price was on an unsustainable trajectory and has corrected deeply as a result, largely akin to what we saw in 2017. Price has bottomed at ~$2000 and will be expected to follow 2017's price action and consolidate under $4000 before printing new highs to $10,000+
- Price action has been following very similarly to the Bitcoin price action as seen in the post linked below
- Price action has been very explosive over the past year and became highly unsustainable
- This resorted in the ~60% crash from the ATH which was very much needed given the euphoric state of Ethereum
- This is vastly similar to price action in the previous cycle, back in 2017, where price exploded upwards and eventually crashed due to the over-exuberance in the market
- In both cases, back in 2017 and right now currently in 2021, price retraced to the 61.8% fibonacci resistance
- Also, price touched the 21 week moving average, also in both cases
- The long-term, multi-year resistance line forms confluence with where price has settled at which is another indication that price has bottomed
- Given all the signals and indications above, and given the confluence they form, there is sufficient reason to believe we have bottomed and that we are now in consolidation phase
- Price projection going forward will be expected to follow the same as in 2017 where there is sideways consolidation before ending the cycle by printing ATH's
- Price is expected to consolidate under $4000 before breaking this level and resuming the bull-market cycle towards $10,000+
Summary: Price was on an unsustainable trajectory and has corrected deeply as a result, largely akin to what we saw in 2017. Price has bottomed at ~$2000 and will be expected to follow 2017's price action and consolidate under $4000 before printing new highs to $10,000+
