Ethereum: It’s Time
ETH Daily Chart
The recent upward-sloping wedge in Ethereum looks like an accumulation cone. Jesse Livermore invented the accumulation cone. Jesse Livermore was a famous trader in the early 20th century and was the main character in a classic novel on trading, Reminiscences of a Stock Operator. According to Livermore’s theory, a break out in ETH could start a parabolic rise.
Bitcoin Dominance (BTC.D): Weekly
A wedge formation is in focus on the bitcoin dominance chart (BTC.D). Recently, BTC.D did a false breakout above the top line of the wedge. In theory, a false breakout above the top of a range can lead to a breakdown below the bottom. If ETH moves higher in the manner we suspect it might, BTC.D could fall to the 2018 low at 35%.
The theory of a post-Labor Day rally in crypto will be tested. The bearish sentiment seems high, and the idea that the ETH merge is “priced in” may not be accurate. There may be one final decline. Here is a reminder to readers: the best trades are the toughest. The risk to the view is a CPI number that makes Fed rhetoric more hawkish.