Disclaimer: I'm bullish long term on crypto.
Is it possible Ethereum can go to $20k? There's a clear invalidation level to take a trade based on this if you can be patient.
Let me talk through this complicated and truncated wave 3:
First we start with a leading diabonal back in March of 2020 that barely retraces at all. Bears were calling for lower prices. As if $200 wasn't low enough, and the ability to buy ETH for under $100 was dismissed as crypto being dead.
Then, we make a big move above $400, still well below the all time high. We see a sharp sell off. This is in August of 2020. Able to buy ETH back under $400 again. We continue to see an extended move up above $4000 before we see significant selling starting to kick in.
Now, here we are, finding support around $1850 and start a rally to new highs. Only this time, we are truncated! We didn't quite make it above $4900 as everyone was calling for a move up to $6000+.
So what happened? Well, to put it simply, there were more people taking profit and selling than there were buyers. That's literally how this game works. More sellers than buyers, the price goes down. The fact that we did make a new high helps with the case that a wave 3 is complete and the correction so far looks very much like a wave 4, especially with the support at the 38.2% retracement level around $1000.
From that 38.2, we've seen a decent bounce and if we make it back above $2000, even if for a brief moment, and come down in 3 waves to roughly $1325, I think the probability that ETH goes to $20k in the next 5 years is pretty high.
Be ready to adapt to change. There are clear levels where this is invalid. Right now, that level is about $1300. Going back there is not great. It would indicate we potentially go lower, so be ready to adapt to change and don't blindly follow the advice you read here. Do your research and make an educated decision.
Is it possible Ethereum can go to $20k? There's a clear invalidation level to take a trade based on this if you can be patient.
Let me talk through this complicated and truncated wave 3:
First we start with a leading diabonal back in March of 2020 that barely retraces at all. Bears were calling for lower prices. As if $200 wasn't low enough, and the ability to buy ETH for under $100 was dismissed as crypto being dead.
Then, we make a big move above $400, still well below the all time high. We see a sharp sell off. This is in August of 2020. Able to buy ETH back under $400 again. We continue to see an extended move up above $4000 before we see significant selling starting to kick in.
Now, here we are, finding support around $1850 and start a rally to new highs. Only this time, we are truncated! We didn't quite make it above $4900 as everyone was calling for a move up to $6000+.
So what happened? Well, to put it simply, there were more people taking profit and selling than there were buyers. That's literally how this game works. More sellers than buyers, the price goes down. The fact that we did make a new high helps with the case that a wave 3 is complete and the correction so far looks very much like a wave 4, especially with the support at the 38.2% retracement level around $1000.
From that 38.2, we've seen a decent bounce and if we make it back above $2000, even if for a brief moment, and come down in 3 waves to roughly $1325, I think the probability that ETH goes to $20k in the next 5 years is pretty high.
Be ready to adapt to change. There are clear levels where this is invalid. Right now, that level is about $1300. Going back there is not great. It would indicate we potentially go lower, so be ready to adapt to change and don't blindly follow the advice you read here. Do your research and make an educated decision.