Ethereum May Be Entering ‘Disbelief’ Phase of Current Market Cycle

The ‘Wall Street Cheat Sheet’ is a popular chart that shows the perceived emotions a trader feels while holding an asset — such as Ethereum (ETH) — throughout the peaks and troughs of a market cycle.

The chart consists of positive emotions throughout the run-up to the top and negative ones in the downtrend towards the bottom.

Applying the same cheat sheet to the Ethereum price, it looks as if the June 2019 high was part of the “Disbelief phase. This means that we have just begun a new market cycle. If this holds true, we are likely to see a significant price increase over the next two years.

Trader and market analyst Bitcoin Jack posted the cheat sheet with the price of Ethereum pictured over it. The price movement closely resembles that displayed in the sheet.

In case it is difficult to analyze the image from the tweet, the chart below offers a full-sized image of the price of Ethereum since 2017 with the emotional stages outlined in the price cycle.

Judging from the chart, we are currently retracing from the “Disbelief” phase. If this upward movement continues, the succeeding price high should be that of “Hope.”

Since the chart is repetitive, this movement should coincide with that in June 2017.

Using the RSI, which is a momentum indicator, we can come to a similar conclusion about the position of the current Ethereum price relative to the market cycle.

The RSI has been oversold (<30) only twice throughout its history.

  1. The first time was in December 2016, when the price reached a low of $5.60.
  2. The second was in December 2019, when the price reached a low of $83.

Therefore, it took roughly three years for a cycle to be completed.

ETH Bottom

The similar RSI values are a further indication that the Ethereum price might currently be retracing from the “Disbelief” phase.

For the upcoming high, we can make…

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