Ethereum Has Doubled in Just a Few Days

Ethereum
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Ethereum continues to delight traders everywhere.  It has rallied from $15 to $30 per coin in just a matter of a couple 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 rarely kind of enough to tell us the answers to this question with 100% confidence.  But the charts do give us indications of where pricetime 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:

Here we see that the pullback at $30 was at the 4th arc pair, and was also at the “1 line” of a long-term Pitchfork (brown line).  The 5th arc and top of the 5th square are at ~ $36 and $39 respectively.

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

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.

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.

Featured image from Ethereum.

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Jim has an MBA from the University of Southern California. He has been trading commodities, forex and bitcoin since 1993. You may email him directly at: jimfred1276 at gmail dot com. Feel free to follow him on twitter.