Since the beginning of this week, BTC, the king of coins, has rebounded strongly from around 62,000 points to above 68,000. After successfully breaking through the strong pressure of 65,000, it will consolidate for a while and move towards the next target of 70,000 integer level.
The strength of BTC reflects the slump of ETH, the former king of altcoins. Bitcoin is less than 8% away from its all-time high, while Ethereum is still struggling near the relative bottom of 2,600, more than 55% away from the 4,093 highs set in March this year. In contrast, Ethereum holders or believers will sigh: pity its misfortune and be angry at its lack of struggle!
However, you don’t have to be discouraged. The Federal Reserve has just started a new round of interest rate cuts and easing cycles. The current funding situation is still tight, and risk appetite is still in its early stages. It is impossible to pull both Bitcoin and Ethereum and other altcoins at the same time. The only choice is to pull the benchmark BTC in the currency circle first, and only after Bitcoin breaks through strongly can the altcoin season come again. When Bitcoin breaks through the historical high and rushes to the stars and the sea, the second brother will eventually keep up with the big brother’s pace, and in a more violent, fiercer and faster manner!
Back to the current ETH market, starting from the big crash on August 5, Ethereum has been oscillating between 2300 and 2700 for more than two months. The oscillation means that the bulls are accumulating strength and continuously consuming the power of the bears. The upward breakthrough of Bitcoin has given the Ethereum bulls enough confidence. From the perspective of the time period, it is enough, and only a super big positive line is needed to break through the resistance and pierce the sky!
The following is a step-by-step deduction of the future trend of Ethereum from the large cycle structure:
Let's look at the weekly chart first. Compared with Bitcoin, Ethereum is weak because the yellow and white lines of the weekly MACD are still below the zero axis, which suppresses the bulls. But in other words, Ethereum has much more room to move upward than Bitcoin. Those who have learned the Chaos Theory know that a buy only appears below the zero axis. When the yellow and white lines return to above the zero axis, the market must have moved a long way. If you want to make a big profit, you must plan ahead.
There are three buying expectations at the weekly level, and it is moving towards the upper section. There has not been a single move since the low of 2111. It is basically in a sideways fluctuation. As the saying goes, the longer the sideways move, the higher the vertical move. This account tends to tend to believe that the time it takes to break through the 2800 pressure with large volume will not be too long, and it will truly grow into a single move.
Looking at the daily chart again, there have been two buy-in orders that did not create a new low in the downward section of the daily level, indicating that the short-selling force has been exhausted and is not enough to push the price below the low of 2111. The second buy-in on the right side of the chart is likely to become one of the starting points for an upward breakthrough. What is not certain at the moment is whether this live broadcast will successfully break through upward or continue to fluctuate. 2800 points is the top and bottom conversion point of the previous wave of market conditions. It depends on whether this one can break through with large volume.
Considering that MACD has already returned to the zero axis, as the trend continues to deepen, it is expected to drive the weekly MACD to cross the zero axis.
Finally, let's look at the 4-hour chart. The corresponding sub-level 4-hour structure of the daily level downward is very clear. What is running now is the upward section of the third buying point of the central axis. There is no divergence in this section, which means it has not been completed. As shown in the figure, there are two types of trends at this level: red and yellow. Regardless of red or yellow, one thing they have in common is to break through the upper edge of the central axis and the suppression of the GG point.
Summary: Ethereum has been fluctuating at the bottom for more than two months, and is now ready to take off. Those who are optimistic about Ethereum can ignore short-term fluctuations and hold it for the long term. Fans who are familiar with this account know that Ethereum is my largest holding in the cryptocurrency circle. Just wait for it to take off, no need to say more!
