Back to ETH and “the DAO”

But before we continue with announced topic, let us draw a temporary line for Bitcoin. As expected and predicted one week ago, it has risen and did it in a nice way. Is this rise over? The author doesn’t think so. The BTC should keep rising. Will we post updates here on this topic? Yes, we will. But not now.

Tha aim of this blog was and still is mainly the Ethreum. And started from today we will need to take care of “the DAO” too, as several exchanges opened the gates for trading DAO directly against tha BTC (poloniex) and also (in case of kraken) against the fiat money. The other exchanges will follow at some point of time too.

So the author thinks there will be a lot of action and, respectively, Elliott Waves.

It will take some time (at least a week) to gather the first market data for DAO. So, we will publish Elliott Waves for “the DAO” a bit later. But for now the author wants to share some general thoughts.

The only clear thing about the DAO at the moment is that it’s not clear at all what will it become in the future. It is no doubt the biggest experiment in the crypto world and it can become huge. On the other side, as with many experiments, it can easily fail. The author at least is ready to loose the invested money in it.

Why ?

Because out of the failed “the DAO” the new ones will immidiately emerge.

Somehow it is like doing yoga. In a authentic yoga (not the modern stylish one) we do it all the time. Pushing ourselfs to the limit, filling in the body and the mind with huge amounts of energy, we bring up to the surface the hidden abilities and unpurities. It doesn’t feel all the time good but as long as the yogi takes care of the unpurities, he is more then fine. Why suddenly mention yoga here?

Well, as you know the author is doing yoga. He was lucky to meet authentic teachers, coming from old traditions. But the reason to mention yoga is mainly because what we have now with “the DAO” feels very similar. Its body (“the DAO”) is filled with a huge amount of energy (money) and it can bring unknown and extremely valuable projects but at the same time it will definately uncover the hidden problems. And it is good so. The community will take care about the problems. If we fail, we will need to dissolve this one DAO and start the new one(s) with the lessons learned. There is nothing what can stop the whole process now.

Ah, “and what’s about the charts” there seems to be the question rising slowly.

Yes, let us come back to Elliott Waves in ETH and our prefered count at the moment:ETHBTCMidTerm

As expected, the ETHBTC declined (as a side note, the author didn’t expect it to decline so fast and so deep). Is it over and we are ready to rise strongly above ATH from the current levels in a straight line? Not likely at the moment. As you can see from the chart, on the way down the ETHBTC formed quite nice 5 waves. Waves 2 and 4 were different in time and depth. Waves 3 and 5 are extended, which happens very often in ETHBTC. All in one, it looks like a really nice 5 waves decline. The only one potential concern is that neither ETHUSD nor ETHEUR formed 5 waves on the way down. But we will tell more about these two pairs in the next report.

For the moment the most likely direction for ETHBTC is to recover up into the “retracement zone”, which is between 0.02580 and 0.02960.

Have a nice weekend and may be we will be able to virtually talk tomorrow.

The Elliott Wave Principle describes the behaviour of the financial markets. This Principle is build on the mass psychology swings from pessimism to optimism and back in a natural sequence. When these swings happen, the specific Elliott wave patterns in price movements are created and become visible. Each pattern has implications regarding the position of the market within its overall progression, past, present and future.
The purpose of our blog posts is to outline the progress of markets in terms of the Elliott Wave Principle.
While a course of conduct regarding investments can be formulated from such application of the Wave Principle, at no time will my posts make specific recommendations for any specific person, and at no time may a reader or viewer be justified in inferring that any such advice is intended.
Very important. Investing carries risk of losses. You should be aware of all the risks associated with investing/trading financial instruments. Information provided in this blog is expressed in good faith, but it is not guaranteed.
The market service that never makes mistakes does not exist. Long-term success trading or investing in the markets demands recognition of the fact that error and uncertainty are part of any effort to assess future probabilities.
This blog and the information provided here should not be relied upon as a substitute for extensive independent research before making your investment decisions.
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Author: Ravno_108

Sentiment wave rider. Product creator. Yogi

9 thoughts on “Back to ETH and “the DAO””

  1. Thanks for the update (and sharing your yoga experiences)! I feel much more in ‘control’ somehow (even when ETH doesn’t behave as planned). Eth is already on the move up — let’s see how far it goes!


    1. ETH will eventually go up. Just need to calm down some hot heads, who were too bullish =) Besides, Elliott Waves for BTC were really very bullish, so there must be much more attention flowing to this market. As soon as (yet again) almost everyone will beleive the BTC is the king, the ETH will rise in its full power.

      Basically, almost the same story over and over again…

      Amazing, how short memory of the traders is, right?


  2. quick follow up question: is the 0.02580-0.2960 correction ‘zone’ to be reached in an a-b-c manner over the course of a couple of days? (as it touched 0.2500 today and fell back without making a lower low)


    1. Can be a-b-c, can be “Flat” (with even making new short-term low), can be triangle. There are quite some correction patterns, difficult to say which one will take place.
      As for now, the advance doesn’t seem to be completed. The price is Ok, but too short in time. Should take longer.


      1. Thanks — so, we wait a bit; if it doesn’t reach 2580 we conclude that the sentiment is more bearish (just like it dropped lower than expected), and would still expect lower lows (below 2060) (unless if it were to go above 2960 we would reevaluate)?


  3. Yes, something along these lines, Joost. There can also be a triangle forming now on a short-term. If it does, we will have some nice trading opportunities soon.


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