Price Action on Ethereum is Looking Eerily Similar to 2018
In this post I will talk about the price chart of ethereum. It has nothing to do with upcoming hardforks, upgrades, stake of the crypto industry. It is purely an analysis of the price action on the daily chart.
Yesterday I did a post talking about how the price of ethereum did not stay below the 200 day moving average for more than a couple months the last two times price got below it.
Those occasions occurred in a sideways market, not a bear market. So that is why I bring you this chart. I won't say we are in a bear market, but we are basically one more price sell off from that being a reality.
And this is why I post the chart below....
Looking at the above chart you can see I circles the 2018 top and the current 2021 top.
Looking at the past 6 months the price action looks almost identical just with the girth of the move being larger from a price standpoint, which makes sense since it takes a larger move in actual price to equal a similar % move at smaller prices.
Anyway, the point is the rise and the fall look very similar and ETH is basically a sell off to 1200 away from giving back nearly the whole move, just like in 2018. That was followed by a dead cat bounce, which then faded back into selling until price gave it all back and even went below where that bull market began.
The 200 day MA
And this leads me to the 200 Day MA I posted about yesterday. In the 2018 instance where ETH fell into a bear market, it took almost 11 months before it reclaimed the 200 Day MA.
So based on my post yesterday if ETH is staying out of a bear market then we should only see price below the 200 Day for a few days to a few months max.
If ETH is going to sell off an go bear market mode, then we could be waiting 6 months to a year for it to reclaim that average AND stay above it. (In 2018 it poked above it on the dead cat bounce).
We will have to wait for price to hit certain price levels to really know. And that is the thing about charting and investing. It is probabilities and no one can tell you XYZ or ABC coin is going to X price in Y amount of time.
They are just guessing. Price level predictions are one thing. Duration is a whole different story.
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