TRADE ALERT - Ethereum - Long - W formation - 12 April 2021

Reason #1: When the Chinese invest in Ethereum you buy!

One of the major drivers causing Ethereum to rally, is major Chinese companies buying Ether.

Meitu (Chinese app maker) recently bought $22.1 million worth of Ether last month alone. This makes it one of the first major companies in the world to invest in Ethereum.

Talking about major companies…

VISA is also putting their hand in the Ether pie

The next major company, which needs no introduction is VISA Inc.

Last week, they said their payments network will use USDCoin to help settle and facilitate transactions using Ethereum’s blockchain.

This is helping keep investors hungry for Ether.

We then have well-known billionaire Mark Cuban (entrepreneur, media proprietor and investor) who said owning Ethereum is the closest "to a true currency".

But nothing shouts 'rally' more than the charts.


In the daily chart, we can see Ethereum has been on a strong uptrend since December.

From a low of $500 it rallied up to over $1,900.

Then over the last two months it's been in a sideways formation with the buyers and sellers fighting over whether it will continue its rally or correct.

During that time, it formed one of my break-out patterns known as a W Formation.

This pattern resembles the letter W.

And last month, we finally saw the sellers succumb to the buyers as it broke above the high at $1,900…

If we use the High-Low calculation we can work out where Ethereum is heading next.