Hey there,
Wanted to speculate on the Ethereum volatility and how to capitalize on the short term market.
Consider the following from Michael Novragritz from the recent Forbes Article (06/29/2017) ; "About two months ago, hedge fund billionaire Michael Novogratz made a bold announcement: He'd put 10% of his net worth into digital currencies including Bitcoin and Ethereum. But a lot can happen in a couple of months. Specifically, the price of Bitcoin has more than doubled, and the Ethereum price has multiplied six-fold.
So around the time the cryptocurrencies reached all-time highs earlier in June, with the Bitcoin price hitting $3,000 and Ethereum breaking $400 the following day, Novogratz thought the current crypto boom had topped out. He sold "a bunch" of his digital coins.""
"If Bitcoin fell back down to $1600, he said, he’d "be buying a lot of it." And if the Ethereum price retreated to between $150 and $200, it would be cheap enough to merit buying more, he added.
Those prices would give Ethereum a total market value of about $20 billion, which "sounds about right for where we are" in the evolution of the technology, Novogratz said."
So we can see that the whales are seeing the top at the current market at under $400. An attractive buying price and ultimate resistance would probably be around $200-220 in my opinion. I believe in next upcoming weeks that the price will bounce from 230-250 to 300-320 or maybe high 200's. Buying as much as possible around the 230-250 price and selling for 300-320 or even high 200's seems profitable and due to historical data and based on the technical factors - it seems to be a safe bet . After all, the current resistance levels and the current volatility seems to be the only thing we can seem to count on given all the movement and things going on.
What I mean by that is that the current volatility is probably due to whales unloading from ICO's or selling in general as the bubble is being speculated, however as ETH gets more mainstream, people will be buying in at attractive prices creating a somewhat stable balance with the current market cap. I personally am buying in at 230-240 and expect the price to bounce back up to 280-300 within the next few days. I suspect this trend to follow until mid July.