Ethereum: Speculation, Open Mind ($1,600 Or $1,000?)

4 set

While Ethereum is the second biggest Cryptocurrency, it is still an altcoin. Anything can happen within this market.

We already know of the bullish potential and capacity for this and other projects to grow.
We know these are great companies and the future of money, finance, but, we are witnessing a correction now and therefore we have to consider the bearish side. How far down can it go?

Once the correction is over we go back to the bullish potential and how high can it go.

Ethereum underperformed the market recently. This can be due to the fact that it has been growing since June 2022, while others hit bottom in mid to late 2023.

The weekly MACD shows a strong, more than three years old bearish divergence. It shows the worst conditions and reading since January 2022, when the last bear-market started to gain full force:

The first baseline level has been compromised. Looking at the weekly timeframe, it is easy to see how much more room there is available for prices to move lower.

The "new baseline," the price at which Ethereum traded around October 2023, the level preceding the last bullish impulse, is the next target. This range goes between $1,750 and $1,550.

The weekly RSI is already bearish, showing an almost 4 years long bearish divergence, and already lost its last support before a full-breakdown.

Right now the most worrying fact are the Ethereum Spot ETFs; the want in, they went big and they want to buy between $1,000 and $1,200. This would be the level at which ETHUSDT traded around November 2022. I know this sounds really low but some altcoins are already there and right now Ethereum is just an altcoin and it underperformed the market recently (a sign of weakness).

I think the next target is the "new baseline," but I am prepared for all scenarios just in case. It is amazing how fast everything can really change. One day we are relaxed looking at our computers and having fun in every way, the next day we have a crash and prices go much lower than any thought possible the previous day. This is how the markets work, they tend to produce sudden events that we never thought possible. The chart shows the tendency and the market follows with events that confirm and justify what the chart shows.

After the correction is over, we will have a new growth phase and Ethereum can easy go above $10,000, but first we have to see how far down it can go.

We only have a few months left for the entire correction and bottom to settle. After this, we are back on the positive and we think solely about LONG, up and green.

Namaste.