Accelerated Pace

In our opinion we would characterize the crypto market as operating on an accelerated time scale. Using our analysis method can work quite well through all time frames, crypto simply moves much faster than any other market.

So lets try to put the speed of this market in context, Coinbase founder, Fred Ehrsam, gave us an interesting perspective.  In a recent interview he was asked whether cryptos were in a bubble, to which he responded, “I have seen several boom and bust cycles in only his seven years in the business.”

Bruce got his feet wet trading Ethereum very early in its history. Within months of our first trade in early 2016 it was three multiples higher, but in December 2016, it sank 60% in a six-month bear market. Bruce exited the positions at the time after it broke bull market support level. We re-entered the market at the $7 to $10 dollar region after trading patterns presented a new impulsive structure. It is now hovering around $300.

Through the lens of the FM Wealth Management analysis system we call the current rally under way in Ether the third wave, based upon our Fibonacci based method. By applying this method we derived the targets as shown in 1 in Fig. 1.

Fig. 1 chart of Ethereum waves 1, 2, and 3.

If we compare the third wave in Ethereum, (which is still in progress) to the great bull run of the stock market. Essentially that means that we are comparing 84 years in the S&P500 to just over six months in Ether. We can see from the above graphic that in that six months, Ether has outperformed the S&P by many fold. This gives further evidence to the accelerated return in time, but one must realize that also means the ‘busts’ come with similar acceleration (can anyone remember the one about roses and thorns).