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Analysis: Has Ethereum Reached its Peak? Here is Another Cryptocurrency to Watch

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Analysis: Has Ethereum Reached its Peak? Here is Another Cryptocurrency to Watch

Introduction

Ethereum

Ethereum is looking at several layers of resistance on multiple timeframes.  It is time to exit that trade, in my opinion.  Here is an example, on the 4 hour chart:

Other timeframes look equally scary.  It seems to me that more aggressive traders will look for a short in this area.  However, it is too scary to short a bull market like this one for me.  I’ll leave that trade to others.

Bitcoin

Bitcoin is stuck in a sideways movement which does not have any obvious reason to advance until its siblings top out.  It is above the top of the square, so it does not look like a fall is imminent.  However, the shorter-term charts are not just sideways, they are flat.

While eth is looking likely to top out quite soon, others, such as Monero, are looking poised to move upwards next:

Monero

This chart looks delightful.  Pricetime has only just crossed the 1st arc pair.  The 3rd arc pair is a good first target at $26, but it would not surprise me at all if it went to the 5th pair, at ~$36

All in all, it appears that for now at least, the so-called ‘altcoins’ have taken center stage.  Bitcoin may resume its run in the not-distant future, but for the time being, the money is rolling into several of the better-known of her siblings in the crypto space.

Bonds

US Treasury Bonds are arguably the most traded contract on the planet.  With all the talk about interest rate hikes in the news, I decided to take a look at the chart to see what the reason was that such talk was in the air.  As you can see, bonds are very near the 5th arc on a daily chart.  Either the low is already in, or there is just one more push down remaining.

Happy trading!

 

Remember:  The author is a trader who is subject to all manner of error in judgement.  Do your own research, and be prepared to take full responsibility for your own trades.

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Jim Fredrickson

Jim Fredrickson

Jim has an MBA from the University of Southern California. He has had a long career in both Corporate Finance and IT. Along the way he discovered that trading was a vehicle with great promise, but struggled for a long time without a mentor. After having been knocked down many times and having struggled to get back up, he had an epiphany and realized that geometry was a solution. He shares his experience here. If you do well as a result of suggestions made here, feel free to say thank you :) BTC: 1FUq3GB1Q8zz2JpuBr7YHzVBKnaWoxgmya Follow him on Twitter (@jimfred1276) or email him at jimfred1276 at gmail.

Comments
  • user

    AUTHOR tadej

    Posted on 11:57 am March 16, 2017.

    Hi Jim,

    What is your take on BTC hardfork. Is it wise to short the positions now and wait until the situation gets more clear?

    Thanks

  • user

    AUTHOR Jim Fredrickson

    Posted on 1:35 am March 17, 2017.

    I would not short BTC unless you know precisely what you are doing. In all likelihood, Wall Street was trying to front-run the ETF deal and is now putting all that cash into the various altcoins. At some point though BTC is likely to head higher – much higher.
    For my money/risk tolerance, better to just stay out of BTC rather than short it. ETH is likely at or close to it’s peak, but watch Monero, ZEC, and even Litecoin, which is still less than $5. There are almost certainly some money to be made in all of these coins.
    Just my opinion. Good luck.

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