We live in crazy times. Volatility is the name of the game nowadays. Prices of stocks and commodities get pushed around on a daily basis. But no asset trades as insanely as the cryptos. We have covered Bitcoin’s price action in previous articles. Let’s now take a look at what’s up with Ethereum…
Ethereum is often compared to Bitcoin, like silver is compared to gold in the world of precious metals. It’s even more volatile than Bitcoin… and that’s saying something. LOL
Ethereum has been flying high in the last few trading sessions. But we must also ask ourselves: Is Ethereum Doing An EXACT REPEAT of Early 2018? Looking at the charts, it FEELS LIKE IT!
Ethereum tends to have a delay in topping after Bitcoin does. It takes 4 weeks (28 days) more for Ethereum to reach its peak.
Given that Bitcoin seems to have reached its top in this cycle on January 8, Ethereum’s top was due today.
However, Ethereum tends to top and bottom in price on Sundays, so it is possible that Ethereum will spike even higher from here.
According to our calculations, if Ethereum does repeat its pattern from the last cycle in 2018, then it is going to peak at $2,200 on Sunday, February 7, 2021.
But after that, beware folks, because the illusion of digital wealth might evaporate rather quickly!
Last time Ethereum peaked this aggressively, it then gave back 75% of its peak in a mere 75 days…
So, let’s never forget what Mr. Buterin, Ethereum’s creator, famously said soon after Ethereum’s collapse started back in 2018:
Reminder: cryptocurrencies are still a new and hyper-volatile asset class, and could drop to near-zero at any time. Don't put in more money than you can afford to lose. If you're trying to figure out where to store your life savings, traditional assets are still your safest bet.
— vitalik.eth (@VitalikButerin) February 17, 2018
Reminder: cryptocurrencies are still a new and hyper-volatile asset class, and could drop to near-zero at any time. Don’t put in more money than you can afford to lose. If you’re trying to figure out where to store your life savings, traditional assets are still your safest bet.