A Technical Analysis of Ether Cryptocurrency
Disclaimer: This article is not investment advice, the opinions expressed are solely those of the author.
I am a big fan of technical analysis. Some call it hocus pocus, but try telling that to classical chartist Peter L. Brandt whose 30 year audited track record of 41.6% annualized returns in the commodity futures markets is good enough for me to take it seriously.
To borrow a phrase from Mr. Brandt, chart patterns represent possibilities not probabilities. A classical chart trader derives his or her edge from aggressive risk management over a long series of trades, not by betting the farm on the next pattern or signal.
Bitcoin is down big this week, by over 30% from recent highs, and yet Ether / USD is holding steady. It is safe to say this move has shaken out some weak hands in the Bitcoin market. I have noticed some bullish patterns forming in the Ether market, namely two ascending triangles with upper boundaries at the $350 and $400 levels. A move above $350 could possibly launch a test of the $400 level, and from there perhaps to $600 or beyond.
I do not recommend any reader make investment decisions on the basis of these charts. Comprehensive risk management is far more important than taking any signal in any market. For those who would like to learn more about this topic, I highly recommend the Factor Trading Service research available via https://www.peterlbrandt.com/.
Be careful out there!
