Dear subscribers and investors,
First of all, we want to thank everyone for the amazing feedback that we received on our last article on bitcoin.
Many traders reached out to us and asked us if we could publish another analysis regarding Ethereum. We want to give back to the community on tradingview and chose to publish our analysis for everyone here.
We as Mendenmein Capital cover Ethereum since 2019, in 2020 we published an article in which we disclosed our purchase of ether at the price of 408.63$. Our analysts are confident that despite the -70% drop Ethereum still has a bright future and will reach new all-time highs in the next years.
In the upcoming years a new bullrun could take Ethereum to prices above the previous all-time high and our analysts even expect price movements above 8'000$.
First things first!
Keep in mind that if you invest in cryptocurrencies you should always watch the movements of bitcoin - the bear market in most currencies will only be over if bitcoin reaches its final bottom.
Technical explanation of the elliot waves and indicators:
Our detailed chart shows that we believe that Ethereum is currently trading downwards in a large wave (c). Furthermore the chart history of Ethereum points towards two major wave (1) - wave (2) setups.
Our analysts believe that Ethereum is in the last stages of the wave (1) - wave (2) setup, which is shown in white. As many investors may notice, the situation in Ethereum is very similar to the one we described in bitcoin.
We believe that the peak of wave (1) was at 4382.31$ and the all-time high at 4868.53$ was only a corrective (B) wave. Since this (B) wave, Ethereum is trading downwards in a wave (C), our analysts assume that this last wave could bottom out in our highlighted buying zone. (1200$ - 850$) The more detailed movement can be seen on the detailed chart below.
We will monitor Ethereum very closely once the price reaches the green zone. Depending on the volatility and the current wave setup we will announce our acquisition here on tradingview.
In comparison to bitcoin, there are only a few indicators available to the public which cover the historic price movements of Ethereum. However we would like to share a quick insight featuring the MACD and RSI, furthermore, the Ethereum rainbow chart is of importance for investors.
(Note: Ethereum doesn't have a very large historic price pattern so the rainbow chart and other indicators aren't as effective as in bitcoin.
Always check the current indicators in bitcoin if you choose to invest in altcoins!)
The chart below features the MACD, RSI and a 200W moving average. Since the top of wave (1) the MACD couldn't establish another high and has declined ever since. The selling volume will probably reach another historic high this week but we think that this pressure will slowly decrease in the coming months.
Additionally, the RSI is trading near a historic low and our analysts believe that a major trend shift will happen in the next weeks or months
Ethereum Rainbow Chart (Copyright Blockchaincenter.net)
The different rainbow colours indicate which actions are most advisable in each market phase. The three lowest zones are most important for our analysis and are divided into Accumulate, Undervalued, and Fire Sale.
In alignment with our analysis, we see it as most advisable to start accumulating Ethereum once it reaches our green buying zone. (1200$- 850$)
Summary: (Similar to bitcoin)
Our analysts believe that the bear market in most cryptocurrencies will soon be over.
Mendenmein Capital will watch Ethereum very carefully in the next weeks and will announce acquisitions if we see an opportunity emerge.
In the next few years we can expect another bull market which will take Ethereum above its previous all-time high and eventually to our price target of 8'000$.
We have successfully identified the bull market in 2020 and we are confident that our analysts will succeed in doing so once again.
First of all, we want to thank everyone for the amazing feedback that we received on our last article on bitcoin.
Many traders reached out to us and asked us if we could publish another analysis regarding Ethereum. We want to give back to the community on tradingview and chose to publish our analysis for everyone here.
We as Mendenmein Capital cover Ethereum since 2019, in 2020 we published an article in which we disclosed our purchase of ether at the price of 408.63$. Our analysts are confident that despite the -70% drop Ethereum still has a bright future and will reach new all-time highs in the next years.
In the upcoming years a new bullrun could take Ethereum to prices above the previous all-time high and our analysts even expect price movements above 8'000$.
First things first!
Keep in mind that if you invest in cryptocurrencies you should always watch the movements of bitcoin - the bear market in most currencies will only be over if bitcoin reaches its final bottom.
Technical explanation of the elliot waves and indicators:
Our detailed chart shows that we believe that Ethereum is currently trading downwards in a large wave (c). Furthermore the chart history of Ethereum points towards two major wave (1) - wave (2) setups.
Our analysts believe that Ethereum is in the last stages of the wave (1) - wave (2) setup, which is shown in white. As many investors may notice, the situation in Ethereum is very similar to the one we described in bitcoin.
We believe that the peak of wave (1) was at 4382.31$ and the all-time high at 4868.53$ was only a corrective (B) wave. Since this (B) wave, Ethereum is trading downwards in a wave (C), our analysts assume that this last wave could bottom out in our highlighted buying zone. (1200$ - 850$) The more detailed movement can be seen on the detailed chart below.
We will monitor Ethereum very closely once the price reaches the green zone. Depending on the volatility and the current wave setup we will announce our acquisition here on tradingview.
In comparison to bitcoin, there are only a few indicators available to the public which cover the historic price movements of Ethereum. However we would like to share a quick insight featuring the MACD and RSI, furthermore, the Ethereum rainbow chart is of importance for investors.
(Note: Ethereum doesn't have a very large historic price pattern so the rainbow chart and other indicators aren't as effective as in bitcoin.
Always check the current indicators in bitcoin if you choose to invest in altcoins!)
The chart below features the MACD, RSI and a 200W moving average. Since the top of wave (1) the MACD couldn't establish another high and has declined ever since. The selling volume will probably reach another historic high this week but we think that this pressure will slowly decrease in the coming months.
Additionally, the RSI is trading near a historic low and our analysts believe that a major trend shift will happen in the next weeks or months
Ethereum Rainbow Chart (Copyright Blockchaincenter.net)
The different rainbow colours indicate which actions are most advisable in each market phase. The three lowest zones are most important for our analysis and are divided into Accumulate, Undervalued, and Fire Sale.
In alignment with our analysis, we see it as most advisable to start accumulating Ethereum once it reaches our green buying zone. (1200$- 850$)
Summary: (Similar to bitcoin)
Our analysts believe that the bear market in most cryptocurrencies will soon be over.
Mendenmein Capital will watch Ethereum very carefully in the next weeks and will announce acquisitions if we see an opportunity emerge.
In the next few years we can expect another bull market which will take Ethereum above its previous all-time high and eventually to our price target of 8'000$.
We have successfully identified the bull market in 2020 and we are confident that our analysts will succeed in doing so once again.
If you should have any questions regarding our analysis or elliot wave counts feel free to contact us.
However our analysts have discovered a concerning structure in the chart today.
Due to a very weak upward movement and a harsh rejection at the 0.382 retracement the chances for new lows have increased tremendously. The whole cryptomarket has still a chance of recovering further but below the important 0.5 retracement a sustainable trendshift is unlikely.
We want to warn investors about a further decline in most cryptocurrencies and encourage everyone to take necessary action.
We at Mendenmein Capital won't close our announced long positions because we will continue to accumulate bitcoin and ethereum.
Our subscribers can choose to simply put their stop-loss on their entry or exit the market with minor profits right now.