Ethereum, Ethereum, Ethereum. My best performing coin so far in this bull run, largely because I managed to catch it at the bottom when I brought it but that's besides the point. We all know how the money flows around the crypto market, as I had mentioned in one of my previous articles 'Pathway to Altseason'. We have seen Bitcoin go absolutely crazy since it bottomed out in July and it makes sense for it to be the first one to come out of the mud - it is the leader of the crypto market. So let's look at how have the alts been faring vs the king.
Altcoins vs Bitcoin
This is the Bitcoin chart on a daily time frame with the orange overlay representing ALTPERP which is an index of 10 large cap altcoins. As we can see coming out of this recent correction, Bitcoin has gone on an impressive run marching back to retesting ATHs, whilst altcoins have been left in the dust... as of now.
See like we established earlier, Bitcoin is the leader of crypto and so it makes sense for it to be the first out. But where does the money flow to once it begins to cool down? Ethereum & friends is the answer. In this specific scenario, Ethereum is primed for a big move especially.
And here is why...
The first reason we have here is the inverse head and shoulders setup we have here on the daily time frame. Inverse head and shoulders are very common patterns when assets are looking for a reversal in price action. We have comfortably closed above the resistance for it, and so following this setup the price target is set at $4600 which also perfectly coincides with the R2 pivot for the month. This would represent a further 18% rise from current prices, which for Ethereum, can be easily done.
Here is the second reason. This time, a pattern that we can see quite clearly on the weekly time frame. A very rare occurrence. This, ladies and gentleman, is the cup and handle setup. As we can see here this is a big one. Using the pattern and the Fibonacci retracement targets, our price target is around $6000-6300. However, we must first get above the first major resistance which is the $4000 mark. If we have a weekly close above that, this setup can then be activated and seen as realistic. We will have another major resistance at the ATH at $4500, but once that's cleared, we will see clear blue skies.
And that's it for today my friends, it will be another bumpy ride, but we will continue to see this through. Ethereum has paid us well thus far, let's keep it going. I plan to take some profits out at $6000 for sure, I have learned my lesson with these markets. Of course, not too much will be taken out, but I will take some out.
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