Ethereum went parabolic in 2017 & early 2018 on the back of the fake ICO boom. Since than it has retreated and free falling. After posting a high above 1400, ETH has lost more than 95% & has traded in double digits. Its an epic fall. But for cryptocurrency such boom & bust cycles are nothing new. Bitcoin itself has gone through several boom & bust cycles wherein it ended up losing more than 80% of its value with peak losses of as high as 94%
Why such crazy moves happen in the first place? Why do they pump so hard & dump so hard ? Well the answer lies in the unregulated nature of how this business works at the moment. Due to lack of regulatory oversight, Wash Trading & manipulative practices are rampant. Its easier to create a cabal of small group of investors & accumulate certain coins & pump them to epic levels only to be dumped again.
While regulatory insights itself is not a guarantee that manipulative practices wont happen but atleast they stop brazen & apparent manipulations. Anyways thats the world we are living in and since we all have already accepted such practices as part of the game, lets move on and make some money using Technical Levels. TA works purely because majority of the market accepts the basic logic of Support & Resistance & in the absence of manipulations (They cant & dont manipulate all the time) the only thing to fall back upon is Technical / Fundamental Analysis (off course sentiment too)
Looking at Ethereum Long Term Chart, i see some of normalcy returning to the crazy downside momentum. However we arent out of the woods yet but still i see a potential trade setup that offers a good speculative Risk:Reward
I am downgrading my ETH Buy from earlier 111-122 to 98-112 Bitfinex Prices. Moving my stops lower to sub 79 Levels. Targeting a Move above 165, 193, 229 initially with ultimate mid term target of 355-377
This is a swing trade idea & not meant for Bitmex Leverage traders. This wont deliver instant profit either. Its a BUY & HOLD for 45-60 Days idea with Potential 1:6 Risk : Reward
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