So we've had a slight correction in the markets. Not just BTC, not just crypto, but all of the stock market too.
If you've watched the markets for a while you start to understand, there is a correlation between BTC and the stock market. Theres also a correlation between BTC and the rest of crypto. When BTC drops, it pulls everything down. It's been only recently that we've started to see Ethereum really coming into its own.
In the past few months BTC has made a few corrections (~30%) but Ethereum has said "nah, I think I'm good." and kept going. That's new for the pair. This happens when a market cap starts maturing and starts to have it's own weight. Think of them like the planets, the bigger the market cap the bigger the mass. Which equals more gravity to move objects around it. It's very similar in the markets.
Now lets take a look at ETH. It was on it's own upward trend and just recently decided to break out of the top (the bottom green line on the chart) and accelerate the trend. In the past few days the stock market has seen a dip, BTC has also seen a dip.. That's a lot of gravity pulling down. However, when ETH hit the top of it's former trend line, it rebounded sharply and that bottom green line is now acting as support. While the trend is moving down (marked with the other two green lines on the chart, forming a bullish pennant) Ethereum is running out of time to make a decision. It wants to be on it's own. It wants to continue its price discovery mode.
Look for ETH to break out of the top of its current trend and continue upward. It's very close to making an attempt sometime today.
If you've watched the markets for a while you start to understand, there is a correlation between BTC and the stock market. Theres also a correlation between BTC and the rest of crypto. When BTC drops, it pulls everything down. It's been only recently that we've started to see Ethereum really coming into its own.
In the past few months BTC has made a few corrections (~30%) but Ethereum has said "nah, I think I'm good." and kept going. That's new for the pair. This happens when a market cap starts maturing and starts to have it's own weight. Think of them like the planets, the bigger the market cap the bigger the mass. Which equals more gravity to move objects around it. It's very similar in the markets.
Now lets take a look at ETH. It was on it's own upward trend and just recently decided to break out of the top (the bottom green line on the chart) and accelerate the trend. In the past few days the stock market has seen a dip, BTC has also seen a dip.. That's a lot of gravity pulling down. However, when ETH hit the top of it's former trend line, it rebounded sharply and that bottom green line is now acting as support. While the trend is moving down (marked with the other two green lines on the chart, forming a bullish pennant) Ethereum is running out of time to make a decision. It wants to be on it's own. It wants to continue its price discovery mode.
Look for ETH to break out of the top of its current trend and continue upward. It's very close to making an attempt sometime today.