And thus appeared the most important price level for Ethereum
There are 8 Major Harmonic levels on any chart. Each level represents the hardest and stiffest form of support/resistance when prices get to those levels. They should be the most difficult value area to cross above or below. Where Ethereum is currently trading is the last stand. The final castle. It is the Alamo and Thermopylae.
The 1/8th Major Harmonic
The 1/8th Major Harmonic is the last Major Harmonic. Below this price level is weaker and weaker support – in fact, there is no major support below here. But this represents a bottom. The support structure here is massive – nevermind Vitalik Buterin’s baseless comments the cryptomarkets never seeing exponential growth. Cryptocurrencies are a new asset. They are a slave to the same constant and consistent patterns of time as the thousands of years of grain markets we have. Cryptos have not even entered the nascent stage – the exponential growth has not yet started.
Nevermind the continued negative news and fear of this market. When all you hear is fear, frustration, anger, and regret – take notice. There are new and veteran traders in this market who have gone through significant emotional trauma and psychological hell in this market. Some have looked at their portfolios every day and have watched it whittle away – lower and lower. Some look at the balance of their wallets on their phone hoping for a reprieve. Some have converted – maybe too late – to shorting the rallies and have become drunk on the expectations of swift profits. Some have been advocates of cryptocurrencies, but have now become opponents.
The key word here is capitulation. Price represents it and so does sentiment. And that is what the 1/8th Major Harmonic represents: Extreme Oversold Conditions. There are strong considerations identifying a bottom here, a final bottom:
- New Moon phase.
- Yearly lows on the 1/8th Major Harmonic.
- Gann Arc as support.
- 6/8th Pivot in time.
- Supportive Gann angle in the Square of 144.
- Parabolic fall – this is an important one. A significant portion of the altcoin market and Ethereum show a parabolic fall – a blow-off move and a sharp sell-off.
- 225-day Gann cycle. Price is trading in this cycle. Gann wrote about this cycle that it creates possibilities – it is to be interpreted like the 135-day cycle, which reads: Can be the last low or, more typically a low which ends a bottoming pattern. Always watch for a change in trend. Fast moves can start.
What does this mean?
If we compare the current swings of Bitcoin, its technicals and cycles with those of Ethereum, we have evidence of a primary swing low. Look for a significant rise to begin in the next 7 trading days.
All markets are facing this trend change – all markets are facing a violent change in trend – not just cryptos.