Currently, I predict that Ethereum, as well as altcoins in general in the market, are likely to continue to decline in the short term. Specifically, the price may head towards a 'account balance sweep' at lower devices, marked as the next support area (yellow zone). This is a crucial stage before the price can recover and return to the equilibrium area of the larger trading range (macro range EQ, green zone).

Two Key Points to Note

  1. Slow recovery:
    If the price reaches the support zone and then returns to the EQ balance area, we may find a prolonged accumulation phase near the highs of the trading range (red zone). This is an opportunity for traders to take the time to prepare and implement long-term strategies.

  2. Rapid recovery product:
    If the price recovers and surpasses the EQ balance area faster than expected, we may witness a strong bullish foundation, potentially driving Ethereum towards all-time highs. This is a feasible scenario, especially if the flow of funds and investor confidence return to the market quickly.

Investment Strategy: Dollar Cost Averaging (DCA)

I recommend a DCA strategy (dollar cost averaging), which means breaking down your investment account and buying in stages regardless of prices. The reason is that although I predict this will give traders more time, the current market is not behaving as expected. Taking every opportunity to accumulate speed during low price stages is the best way to minimize risk and increase profits in the long run.

Comparison with Bitcoin 2016

Interestingly, the Ethereum chart currently shares many similarities with Bitcoin during 2016. At that time, Bitcoin underwent a significant accumulation phase on a long time frame (macro consolidation) before entering a strong growth cycle. With Ethereum, I believe this is also a similar accumulation phase, signaling a period of substantial value expansion in the future.

Things Investors Should Note

  • Control trading psychology: The altcoin market has high volatility, so it is essential to maintain a strong mindset and avoid decisions based on emotions.

  • Prioritize risk management: Never invest your entire capital at one price point. Instead, experience investing and use hedging strategies.

  • Follow the trends: Always keep up with market trends and price actions to adjust strategies accordingly.

Conclusion

The Ethereum and altcoin market is entering a crucial phase, with potential dangerous opportunities. Although prices may decline in the short term, this also opens up good opportunities for resilient and long-term vision investors. Trade safely and without worry. Take every opportunity to accumulate while the market is still in an attractive price area.

DYOR! #Write2Win #Write&Earn $ETH