Whilst fundamentals and technical analysis are 2 of the most talked about topics when it comes to price movement on crypto currencies especially ethereum at the moment, I'd like to cover a 3rd view that not many consider...
Where will the price go? is this the bottom or is this the top? Breakouts, fibbinachi, am I seeing w's or m's this is just a small mouthful of technical jargon as to where price is going.... needless to say if the chart readers got it right they would all be stinking rich, but instead they live day to day suffering chronic stress through volatile price movements.
Next its all about those who go deep into fundamentals, they guys can tell you the history and goal of the coin, coin news, upcoming announcements, upgrades. The fundamentals are sound so why is the price dropping so much, is it a correction? is it everyone taking profits? is it fear? the media news and other expert opinions think price is definitely on the downtrend...
But the good news about the fundamental trader is that he will HODL until he can make up his/her mind but sometimes they can also give into the moment.
The 3rd view is the market manipulators, the biggest manipulators being those companies that welcome you with a bonus for signing up to their exchange. You never actually own the coin you just bet which was the coin price is going to go (also known as trading)...
So for example you can bet $1000 for every cent the price goes up on a coin...
So for every cent it goes up you make $1000 and for every cent it goes down you stand to lose $1000. This is just an example figure there is no limit on some exchanges you can bet $100,000+ per cent movement, so for every cent it goes up you make $100,000 and for every cent it goes down you lose $100,000.
These companies/exchanges are the real winners and are the primary cause of chaos on the markets in my opinion. Just to move you off your position they will either buy aggressively or dump like crazy just until you have been moved off your position. So for example say your bet $1 for every cent for ether to go up and your stop loss is 1000 points they can buy aggressively or dump the coin just to move you off your stop loss.
But how it works overall... is balancing their books just like those bookmakers you see that never ever go out of business. Say 45% of their customers are betting the price goes down and 55% of their customers betting the price goes up they will side with the minority and try to manipulate the coin price buy buying aggressively or dumping the coin whichever is most profitable for them overall.
Now that the crypto space is in the billions in term of market cap. There are heavy players and little fish that come to gamble every single day. It is possible to win just as long as you are siding with the minority. This is why the price on ether at the moment and most alt coins go in the opposite direction to what the mass expect and will continue to do so. If an exchange looks to make a gain on $100million is not too hard to spend $10million on advertising, trolls, fake news, make a deal with some of the top people at the news channels etc to cause panic and fear whilst they dump their coins aggressively people see the price go down and they do the same and the downward spiral begins within a matter of hours.
So my advise would be to keep this 3rd view in mind and think about who stands to make the most money on any given day or week in mind when it comes to bloodbath days...
Good article. Same thoughts here. Though prices might seam inflated for now I don't think they will look like this 2, 3 years from now. This is quite an interesting website I found: https://www.coincheckup.com They give great insights in the team, the product, advisors, community, the business and the business model and other techincal insights. Check for example: https://www.coincheckup.com/coins/Ethereum#analysis To watch Ethereum Detailed analysis