Last week I posted a number of price projections for Etherum, Litecoin and Bitcoin. Litecoin and Bitcoin have moved in a very normal range and in a very normal manner. Ethereum, however, is showing some very parabolic moves that do not appear to have any bearish signals ahead of it.
- Ethereum is right on top of the 2×1 angle, which in Gann’s theory of the behavior of angles means that price has been moving twice as fast as time. The momentum is very fast right now and we should typically see a return to the 45-degree angle (at number 3).
- This resistance arc has not been a resistance arc of any kind. Ethereum is just testing this area per normal behavior. The moves that Ethereum made this morning were related to a market-wide response and was not indicative of weakness on Ethereum’s part. In fact, this was nothing but a buying opportunity.
- Do watch for this area, this is the 45-degree angle in this square and is the strongest support zone.
What to look for
When price is trading above the 2×1 line like Ethereum is, we should see a snap-back to the value area of the 45-degree line. When that doesn’t happen, it’s a sign of something different. It is a sign of strength and the creation of a new value zone/area. What we are observing with Ethereum is extremely bullish sentiment and structure. That we did not see any sell-off and push towards the 45 during the bearish fundamental news this morning, is very telling. What is even more telling is that buying was just instant and full of volume. We should expect Ethereum to have extremely high probabilities of continued bullish movements and any pullbacks to be swiftly bought up. We should expect to see the kind of moves we saw in Bitcoin last year.