Ethereum continues to delight traders everywhere. It has rallied from $15 to $30 per coin in just a matter of a couple of days. Regular readers knew to be watching this market, so I hope that all here have added appreciably to their trading accounts.
It goes without saying that all good things come to an end, so the question once again arises: “Where is the top?”
Of course, the charts are rare kind of enough to tell us the answers to this question with 100% confidence. But the charts do give us indications of where price-time wants to go, and sometimes that is enough information for our needs.
Let’s start with a look at the vortex for its guidance:
The blue arrows demonstrate that the vortex correctly forecasted the last 2 major resistance points. The red arrow is all the way up to $45, which is suggesting that this rally still has a lot more room to go.
However, my Gann setup is a bit less sanguine:
This also argues that the rally is not over yet, although the “1 line” of a pitchfork is normally quite resilient as S/R. Certainly, a convincing break above the “1 line” and the 4th arc will signal another buying signal.
Bitcoin has taken a rest during the past few days, as its lesser-known siblings such as ETH and Dash have taken center stage. At some point in the not-distant future, it will likely make new ATH, but I see little reason to trade that market while the other altcoins are on fire.
Remember: The author is a trader who is subject to all manner of error in judgment. Do your own research, and be prepared to take full responsibility for your own trades.
Featured image from Ethereum.
Last modified: March 4, 2021 4:55 PM