Ether Shows Subtle Signs of Strength
After a brutal 2022, Ether is starting to show some extremely subtle signs of strength. When we look at the weekly chart, Ether never took out the June 2022 low, a quite remarkable feat given the FTX debacle. Bitcoin and Ether were both showing signs of improvement this fall, until the FTX crap "hit the fan." While Bitcoin's new low made sense given all the negative sentiment, it is very interesting that ETHUSD found support above the $1,000 level. From a long-term point of view, it looks like Ether is forming a base on base type pattern, which can be seen on the second chart below.
With ETHUSD still in a long-term downtrend and trading below its' 200-day moving average, this is not a time to get aggressive. However, it is a time to be open-minded. Remember, market bottoms always occur when all the news is bad, and for crypto that often means a period where the "sky is falling" and the thought of brighter days seems ridiculous and far-fetched. While I do still own some Bitcoin and Ether in my long-term accounts, I am by no means fully invested. Instead, I plan to slowly add to my position throughout 2023 and 2024 as buy points at higher price levels develop.
Risk right. Sit tight.
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Full Disclosure: I currently own Bitcoin and Ethereum.
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