On Thursday I discussed the strong probability of massive changes and trend reversals that we could see in the very near future here, especially the closer we get to February 4th-5th. Cryptocurrencies are showing signs of that movement and showing support of that movement. I was expecting Litecoin to possibly lead the charge, but we might have to wait for that one. Ethereum is the big mover and the leader of the pack right now. And that is a very good sign.
Prior to the continued downtrend and reversal in cryptocurrencies, Ethereum managed to pull off some significant gains and reached all-time highs during Bitcoin’s continued weakness. Out of the major coins (again, I call any currency a ‘major’ as one that can be converted back into fiat/dollars on Coinbase) Ethereum presented us with the lowest level of risk to the downside and the highest amount of upside potential. Let’s look at this move and how close its forecasted level I discussed back on January 6th.
1. This is the daily chart and it is showing the current price level at the time of writing this article (1216 PM CST). We are currently trading above the 45-degree angle in our square (45-degree angle is the middle green diagonal line). This is very bullish because it means we have not only reentered perfect equilibrium in time and price, but we have also shown an early move for the next bull movement.
2. Notice the range we have left on this 45-degree line, it ends right near the 1560 value area. I have forecasted Ethereum to be trading around the 1369 price area before 2/14 -2/16. If/when we get there, we have a very strong probability to reach the forecasted level back on January 6th of 2500.
3. The value area between the all-time high around the 1420 level is an easy and unhindered move to higher prices. We should be right inside our 3rd impulse move to the top and we could easily hit the 2500 area well ahead of time.
Ethereum should continue to trend higher and then test its all-time high of the 1420 price area. We should expect a strong move above that area towards the 2500 level.