Ethereum (ETH) bulls are hopeful of rally towards $150 despite the recent manipulation in the market. The $150 mark is where most traders expected ETH/USD to consolidate above. It is also a strong psychological support which explains why the price declined hard when it broke below it. There is no doubt that retail buying or selling has little to do with any of that. For the past few weeks, we have seen most such moves orchestrated by a few big players that swing the price to both sides to shake out both the greedy bulls and the bears. While this kind of manipulation would certainly raise some eyebrows in traditional markets, traders have gotten used to it in this market in the absence of regulation.
Even if you don’t trade actively and hence don’t see how the price is really manipulated in the moment, it is still quite obvious from the charts. For instance, you can see the above chart and see how certain patterns have been recurring over and over. The similarities are quite striking which you would agree could not have happened if a small group of people did not have such influence in the market. So, does this mean that it is staged? Absolutely. A small number of big players that control this market are doing what the banks do in the forex market, but in a much different way and with a lot more influence. Does this mean that it’s not possible to make money trading forex or crypto? Certainly not. You just have to understand the game plan and try to stay off the radar of these big players.
Ethereum (ETH) is ready to make a big move against Bitcoin (BTC) as well. The price is all set to break out of the symmetrical triangle it is trading in. In fact, we have two symmetrical triangles on the 4H chart for ETH/BTC. If the price declines below one of them, we would still expect it to find support on the next one. If it declines further, then we would be bearish and expect it to form a double bottom.
The game plan here is that Ethereum (ETH) is going to make a move that will convince most retail bulls that a new bullish cycle may be about to begin. This is no different than how it has been happening over and over throughout this bear market. Then when everyone is all excited again, we will see a sharp decline followed by a slow bleed. That is the game plan and it has worked effectively purely from a psychological standpoint. You can see all of this even if you don’t know a thing about technical analysis. This is why despite the fact that we are very likely to see further upside in Ethereum (ETH) against both the US Dollar and Bitcoin, we need to be extremely cautious because the bear market is far from being over yet.