While Bitcoin is running Keep your Eyes on ETHE! (October 19, 2021)

by DAN ETHE 
This is Scott with your Chart of the Day. I know that Bitcoin is stealing the show right now in the crypto world with the Bitcoin futures ETF. I get it, Bitcoin is the goat. But while Bitcoin is running I want you to keep your eyes on ETHE ( OTCMKTS: ETHE ).

Now whether that is looking at the Grayscale Ethereum Trust ( OTCMKTS: ETHE ) here or just Ethereum ( ETH ) in general by way of a chart like Trading View here, I think Ethereum ( ETH ) is primed for a move, and here’s why; as you can see, Ethereum ( ETH ) on the daily chart, made a nice high, right around $4,000. It pulled back quite sharply into October all the way down to 2,800.00, that’s quite a retracement.

But then, we came back up to that breakdown level right around here. You can see how we back-tested it, failed, tested it. We ended up breaking through, pulling back, backtesting it again, and holding above, So a potential character change is happening right here with Ethereum. We have support right around that $3,600.00 level. If I bring in a little bit of a trendline you can see it’s flagging a bit here on the daily chart.

And that brings us back to ETHE ( OTCMKTS: ETHE ), the Grayscale Ethereum Trust ( OTCMKTS: ETHE ). This is just kind of going sideways. A nice sideways base of consolidation, you may even call it a little bit of a cup with a handle and then another cup and a little bit of a handle, so nice consolidation. The main thing is, for the last couple of days here we have been really nice and tight along all the major moving averages, so that gets me excited.

What I want to see from ETHE ( OTCMKTS: ETHE ) is a nice solid close, maybe above 35.60 on volume. Now, the Grayscale Ethereum Trust ( OTCMKTS: ETHE ) doesn’t follow Ethereum ( ETH ) exactly because it’s based on the NAV, it’s based on inflows, and outflows. There are a lot of metrics that go into the price of the Grayscale Ethereum Trust ( OTCMKTS: ETHE ). But it is a great way for a normal stock trader to get exposure to Ethereum without having to open up a crypto account. So it is something that I watch, not necessarily something that I trade but maybe it’s right for you.

So like I said, what I want to see is a nice solid close, on volume, right above that 35.60 level. If we are able to close strong above there we could be breaking out of what is essentially almost a 2-month base here on ETHE ( OTCMKTS: ETHE ). So keep an eye on ETHE ( OTCMKTS: ETHE ) while Bitcoin is running because if Bitcoin slows down I think we are going to see a little bit more money coming into Ethereum and some of the other Altcoins.

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