ETH ecosystem to fund initial stage of crypto bullrunWhen markets rotate the money has to come from somewhere. Money can move in and out of one sector of the economy into the other, like money moving from industrials into technology or from fiat into precious metals. Money can also move around within a macro system from its constituent sub-systems. In the case of crypto, think we will see the Ethereum ecosystem beggared while money flows out of it into other ecosystems.
In order to try and stay ahead of the rotations into and out of crypto and into and out of the various layer one projects within crypto I turn to the best tool I have, which is the charts. Once we have the layer one blockchain we care about we can look at other layer projects that ride on top of the layer one to move up the risk curve for more volatility as we see fit.
ETH/Bitcoin
Bitcoin is the biggest single slice of the crypto by fame and market cap. The double top threat is pretty clear at this point. The black double top appears to be an eve and eve with the difference between the first and second peak about 3.12% That is about as textbook as we could want to see. We just have to start breaking the neckline of the formation and we should start to see more volatility in the pair.
Eth Dominance
ETH.D is likewise in a double top but this one is a bit further away from the neckline. The targeting is much the same. Due to the structures of the uptrend I think that 40% draw down is very reasonable and realistic.
XRPETH
XRP appears to be in a ascending triangle against ETH with a target close to 2x if full performance is reached.
Solana/ETH
Solana is suppose to be an Ethereum killer and in the long run I think it will live up to its name. I think it has a couple of years for the ecosystem to mature before It does. A major sign of strength will be if this W pattern performs to target. That would have Sol putting up over twice the gains than eth does in the initial stages of this move.
Polkadot ETH
Dot has been moving sideway for the last 4 months and has created some bullish divergence on the weekly chart. I think we will see it slowly erode share out of eth.
Kadena Eth
One of my favorite layer ones to watch and maybe trade before I see my long term set up is Kadena. It is poised ot have a W pattern that pops it over 100% against eth.
Cronos Eth
Cro seems to be another coin in a wedge against eth. The target this cycle is over 300% away from the current level.
ADA ETH
Oh, look, it is another coin in a bullish falling wedge against ETH. Sure reaching the previous ATH might take a decade or so, but that is a decade to favor ADA over eth.
Doge Meme Coin Versus Eth
Want to consider something that at first glance seem moronic or hilarious? Doge has the structure to 70x eth over the next couple of years.
Final thoughts
The Eth team has done a lot to make their system more affordable to use. As price goes down the ease of use goes up and the adoption goes up. Ethereum is in the process of turning itself into a volume trade and not a profit margin trade. That might be a good thing for cryptocurrency as a whole but I am chasing alpha. Crypto gives me more potential alpha than equities so I play here. If the alpha is leaving eth then I am going to leave as well, no matter how good it could be for the world or the ecosystem. Daddy can't pay for his girls food and clothes if he doesn't get that alpha.
