CountOnCrypto - Ethereum Forecast - 07/02/2021

Sunday is historically a blood-red day for cryptocurrencies, we have seen so far today a near 10% pullback.

Pullbacks are a necessary part of a bull market to encourage new players in the market. They liquidate over-leveraged positions amongst other things, a way for the big players to profit.

I imagine if this is the bottom we should expect to see a return to the mid-1600s by Monday morning, once Bitcoin makes a move Ethereum is likely to follow which will give us some more direction.

I would then hope to see us re-testing the .786 Fibonacci level by Wednesday, all of which is in theory; as we are at all-time highs nothing is guaranteed.

A further breakdown and I would expect us to re-test the lower green trendline between 1350-1375. I would be looking for the higher timeframe indicators to bottom out as a confirmation of the bottom.

I have been averaging down my entry using dollar-cost averaging and have lowered my leverage to a comfortable level.


As per usual please use risk management when trading, always do your own research before entering any of your hard-earned money into the market.