Ethereum New "Baseline" $1,500/$1,600 | Learn To Play The Game! Ok. Our "baseline" price was hit perfectly and the way we found this level was simply by projecting a line from the prices traded near January 2024 to the right. Since there was resistance on the way up, we concluded that there would be support on the way down. Sure enough, Ethereum wicked below this level but closed exactly in a mirror fashion as compared to the range it traded at in late 2023 before a strong rise. It is always the same but in reverse.
If you look at the left side of the chart, in early December 2023 Ethereum starts to "push up," upward pressure, buying pressure, bullish momentum. But there is some resistance to remove and it keeps on pushing and in January 2024 it continues pushing higher... It takes a while before all the resistance is removed and higher prices are possible. This is normal.
When Ethereum crashed earlier this month, it produced a long lower wick, support is being challenged. It will keep on pushing down, downward pressure, selling pressure, bearish momentum, until the support breaks. It is the same but in reverse.
The level at which Ethereum found support is exactly the 0.618 Fib. retracement level for the entire bullish wave. Almost amazing the exactitude of these levels. As if nature already had it all planned.
Ethereum is set to continue lower. If the support level doesn't break right away it will continue to be challenged, over and over, again and again, until it breaks. One of the main reasons why Ethereum is going much lower is just because people cannot believe it. People can't believe it, they think it is impossible but the owners of Ethereum, the exchanges, the whales, the institutions and the rest can really use a low price. They see it as nice and attractive and they have no problem at all with a low price. In fact, they welcome a low price. Knowing this, they can short the market easily and willingly and then buy again much lower. They are in no hurry and there is no reason to hurry. Think about it! Who is in a hurry? Only Peter and Johny who bought crypto for speculative purposes and getting rich quick mentality want this to grow fast. The developers and owners want it strong and stable, the professional traders and speculators simply want what is best for their pockets, smart money adapt to market conditions and this is what we have going right now.
Lower prices are welcome by the entire population of market participants but a very small few. This small few are the minority in some sense of the word and they are about to get a big surprise. Ethereum has been growing since June 2022, which is more than two years, and thus they cannot imagine it really crashing as it is about to do. This lack of imagination is one of the main drivers of the current situation. If people were aware, alive and active with the different potential scenarios things would develop much more differently.
I am going into details really just to enlighten and entertain you but it is just crashing, plain and simple. And this is good because Ethereum is one of the giants and money flowing out of Ethereum will support the smaller altcoins and smaller projects that have been neglected for a long while, and, Ethereum will surely recover to become better and stronger in the years to come.
To be honest, we love Ethereum, we love Bitcoin, we love Crypto and we just can't do without. We want to see the market grow, we want to see it evolve, we want to see it higher, we want it more and more and more, but we can read the charts now and the charts are saying down and so we translate what the charts are saying so that you can prepare and make the most of your journey in this game.
It is a game, even though a complex one, it is a game and if you are going to be around and enjoy; learn to play.
Namaste.
