ETHUSD: The Little Bull That Could Pt. 2
If you have read Pt. 1 of the series, you have seen that my ETHUSD price prediction has been fairly accurate. We bounced around $600 and have found mid term support in this area. The volumes are fairly healthy too, which is a good sign for longs.
I have been reading a lot of other traders' analyses and have noticed that there is a general consensus on a few ideas.
1. The price will fall over the next few days. Traders are predicting the price to fall below $600 but there is no agreement where the next support would be.
2. Long term, the price will surpass the previous ATH.
3. There is a large amount of manipulation in the market.
I've taken these three ideas to come up with the following conclusion: ETHUSD will not fall below $600 again.
There are a lot of ideas here on trading view predicting that the price will continue to drop. The ETHUSD Shorts chart I referenced in Pt 1 of this post shows there are a large amount of people in short positions. Whales and manipulators will see traders predicting a price drop, buy the shares that are being sold because of these posts, and therefore forcing shorts to cover their positions. What happens when a trader covers a short? A SHORT SQUEEZE! Take a look at the hourly chart above. We have maintained steady support above $600 and in the last hour, we saw an unexpected burst of buying which drove the price above $640. As I type, the price is getting pushed higher on fair volume. As more shorts scramble to cover their positions we will see ETHUSD continue to climb. Where will it stop? My guess is the next resistance level, around $850. Because so many predict that the price will surpass the previous ATH, I predict we will see the price push past the $850 resistance. If we can overcome that resistance, ATH will be inevitable.
Regardless, I think this is a great scenario for longs. Good luck and happy trading!
I have been reading a lot of other traders' analyses and have noticed that there is a general consensus on a few ideas.
1. The price will fall over the next few days. Traders are predicting the price to fall below $600 but there is no agreement where the next support would be.
2. Long term, the price will surpass the previous ATH.
3. There is a large amount of manipulation in the market.
I've taken these three ideas to come up with the following conclusion: ETHUSD will not fall below $600 again.
There are a lot of ideas here on trading view predicting that the price will continue to drop. The ETHUSD Shorts chart I referenced in Pt 1 of this post shows there are a large amount of people in short positions. Whales and manipulators will see traders predicting a price drop, buy the shares that are being sold because of these posts, and therefore forcing shorts to cover their positions. What happens when a trader covers a short? A SHORT SQUEEZE! Take a look at the hourly chart above. We have maintained steady support above $600 and in the last hour, we saw an unexpected burst of buying which drove the price above $640. As I type, the price is getting pushed higher on fair volume. As more shorts scramble to cover their positions we will see ETHUSD continue to climb. Where will it stop? My guess is the next resistance level, around $850. Because so many predict that the price will surpass the previous ATH, I predict we will see the price push past the $850 resistance. If we can overcome that resistance, ATH will be inevitable.
Regardless, I think this is a great scenario for longs. Good luck and happy trading!
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