Ethereum (ETH) Bulls Expect Further Upside Despite Looming Dangers

Ethereum (ETH) just made a similar pump to the one it made when it tested $200 recently. This pump on ETH/USD was on a shorter time frame but it was everything like the last pump. It was a carbon copy of the exact same fractal from before but on a smaller scale. This is what I mean when I talk about manipulation in the market. There is manipulation to certain extent in other markets. Even banks and large financial institutions use bots and algorithms to influence the price for better entry and exit points. However, it does not happen this way in any other markets, not even in the penny stocks market when an asset just completely prints the same pattern. This should make you wonder how much influence that one party has that they can print the exact same fractal after days of printing the last fractal without any resistance. 

This is one of the signs that there is a small group of individuals that control this whole thing. They play retail traders on both sides taking their money and when things go against them at times, they are quick to resort to the most blatant of manipulation with no regard for how it makes them look. At this point, they are not worried about any of that because the majority of traders are still interpreting that as a bullish sign. When they realize that this was actual manipulation and all of it was staged, it might be too late. At the moment, the bulls are having a good time because they have been handsomely rewarded for being bullish since the beginning of the year. That was the plan because the big players wanted to trap them completely. Retail bulls are extremely complacent at this point while retail bears are too scared to short the market.

The daily chart for ETH/BTC shows how the price had a bearish close yesterday but despite that, it has made another fake pump to the upside. We saw similar fake bullishness in the market until it resulted in leaving a long wick to the upside when the pair closed below the 38.2% fib retracement level as well as the 5 Day EMA. Ethereum (ETH) has started the day in green while Bitcoin (BTC) is in the red.

We have yet to see how this is going to play out but it seems like a lot of retail traders are still way too bullish on altcoins. Ethereum (ETH) and other cryptocurrencies are going to be hit the hardest as the next downtrend begins. It would not be surprising to see ETH/USD decline to a double digit price in the weeks and months ahead. While Bitcoin (BTC) has significant adoption and recognition, Ethereum (ETH) and other altcoins are not perceived as scarce and valuable as Bitcoin (BTC) which is why traders should be very careful being long on Ethereum (ETH) and other cryptocurrencies especially at this time.