The scam wick isn’t anything that we haven’t seen before, this occurred on August 1st, 2020 on ETH right after the price broke above $400 and then scam wicked back down to $220, basically losing 50% of its value in minutes.
These types of scam wicks occur during a bull market to shake out longs. You just have to remember that the market makers don’t want you to win.
At the moment, ETH is holding above the $1594 previous 2017 ATH level after backtesting the $1347, $1373, $1435, and bottom trend of the channel. Since backtesting these levels and dancing around them a bit, Ethereum finally found a general price around the $1580 - $1650 range, which is coincidentally the $1594 previous ATH level. Everybody is screaming dump and short, but we found support above the previous 2017 bull run high level so I can tell you that the party is just getting started.
I’m expecting ETH to continue consolidating around the $1594 level and holding within this channel until it breaks out and squeezes upwards to touch $1784 and then $2022 respectively. After the trend reverses and ETH capitulates to new highs, it’s going to touch the $2700 target that I called out last week.
The market is very overbought and in a bull market, what is one way to ease up the greediness and continue the pump at the same time? Dump the market and capitulate the asset to new highs. We have seen this time and time again, it really isn’t anything new.