Hi All,
Today I will spend less time on TA. As you can see from the chart, it’s simply a bear flag in which everybody can tell from the chart easily. What I would like to tell you however, whether you believe it or not, is “Cartel Analysis”. I thought you might find it interesting.
Did you notice something about the huge pump yesterday? After I said it’s about to drop because of the double top , it shoot up like if there is no resistance. But did you see how much up did ETH continue to go up after it went above the double top? Just right over 3%! What does this imply? It means that the break above the double top was a pure manipulation to squeeze out the short positions. And I believe most of the short positions has got squeezed out (except those ones that opened the short positions very early on/strong hands).
When you thought that the price was going to continue to go up to $440-450 as that will be the next resistance, BOOM!! It dropped so rapidly that many couldn’t even react to the drop. Even if you want to re-open another short position, it was already too late to short - the price was already at around $400. You then start to think because of the huge sell off, ETH will likely to continue to go down. So, you opened a short position @ around $395 - 400. Then what happened? The price starts to climb up again and even above your buy-in price. Weak hands start to get shaken out, thinking – “will the price shoot up again to $430? That’s too risky. Maybe I’ll close my short positions and wait for confirmation”
Not many traders are dare to open their short positions now. They want to wait for confirmation. And that’s exactly what the Cartel wants you to think. They don’t want you to make money. If ETH does break out the bear flag to the downside, I believe it will happen in an instant.
But please keep this in mind, it CAN still shoot up to $430 again, although I doubt it will.
Btw 0.98% , this is purely my speculation. If you don’t like it, that’s fine, just pretend that you didn’t see my post. But if you do like it, please give it a like :)
Taiwan Bear