Early this year, cryptocurrency enjoyed a good run.
In April 2021, we saw Bitcoin (BTC) climb from US$29,000 to a high of about US$63,000. (Bitcoin has corrected since then.)
Amidst that correction, investors turned their attention to Ethereum, which is also referred to as the silver to Bitcoin’s gold.
Ethereum (ETH) bulls cited its practicality, use cases, and how it would be the main driver for future technology.
Calling a correction amid a bull run
While the markets were bullish and pushing up the price of ETH, warning signals started going off on my Macro Trade Plan, pointing to a possible correction.
I issued a warning to my community on 15th April 2021.
As a trader, I took great interest in the possible correction.
Alas, I’m no fortune teller and cannot predict when exactly the correction will occur. However, I started monitoring the price action of Ethereum closely, for the weeks to come.
About a month after I had made the call, Ethereum’s ran came to a halt. On 13th May, I shared with my students that:
After sharing my latest observation, Ethereum did a dead cat bounce, recovered to 3992, before crashing.
What goes down, will go up
The crash was fast and furious, with ETH losing about 48.5% of its value in just 9 days.
On 23rd May, something interesting came up on my trade plans again.
After studying my charts further, I shared my trade plans and ETH trades on 23rd and 24th May:
Cryptocurrency’s volatility is a boon to traders who know how to draw trade plans. Within two days, we were seating on a 64.8% profit.
Congratulations to all who made the trade alongside me.
And well, not everyday is a holiday. So…
What’s next for Ethereum?
As of 29th May, my trade plans suggest that the volatility of the crypto markets have stabilised after the recent sell off.
However, BTC and ETH are giving mixed signals as the bulls and the bears continue their fight in the markets.
While ETH managed to stay above the 200 days moving average (MA), BTC is staying below the 200 days MA even after the recent rebound.
There is still a chance that they will test their recent low.
ETH will likely turn bullish if it breaks and at stay 2825. As for BTC, it is likely to turn bullish only if it breaks above the 200 days MA. See my chart below for the detailed technical picture:
This is not investment or trading advice
Instead of giving you the fish, I prefer to teach my students to fish.
With this important life skill, you can apply it to any tradeable asset offered by your brokers, even on newer assets like cryptocurrency.
I’ll be sharing how I draw trade plans, use them to spot big opportunities and trends early, and rely on them to make daily trade decisions. Join me at my next live session with Dr Wealth.
P.S. I also share how you can join the community where I share selected trade ideas for free, in the webinar.