Like all signals in technical trading, you can never be sure it will pay off. However, if you regularly receive a signal indicating a future movement, you should take it very seriously, especially if it can make or lose you a lot of money.
A long time ago I wrote an article here predicting that etherETH
would explode upwards. This was because transaction fees were increasing vertically and that meant Ether was heavily used. Use equals crypto value. For all naysayers, crypto has many use cases and usage drives and sustains the value of coins and tokens.
Turns out I was right, because when ether came back strong after the last cryptocurrency winter, transaction costs kept up with the rise in price.
So if rising transaction costs cause the price to rise, what does falling transaction costs do? It’s hard to say that falling transaction costs predict falling prices, but you can be forgiven for considering this to be an obvious extrapolation of rising costs predicting rising prices.
I also wrote a call here using the observation that transaction fees dropped and soon after ether appeared.
I’m not a fan of the platitude that correlation is not causation. I would modify that saying to “correlation is not causation, but don’t bet your life on it”.
So here is the chart and, for me, it’s now or never to hit the bottom or the next leg down. I think we are going much lower, but I let the market tell me and the current trend indicates that we are at a tipping point:
I can see a bottom here, due to the perfect fractal of a regular two-step drop. However, we have a sideways trend in place which is the prelude to a big move in either direction. If you enjoy trading, this is a gift because once this trend is broken, you jump on the bandwagon and follow it up or down to the next revaluation breakout.
Right now, ether transaction fees have dropped to such low levels that I can’t remember them being this cheap. This seems to have happened dramatically over the past week. It’s a hunch that comes from the fact that I’ve made quite a few trades, but it’s realized by charts like this from bitinfocharts.com:
Ethereum transaction fees are extremely low.
That’s a dramatic enough shift in downside costs to suggest to me that the next leg of crypto is imminent.
Be vigilant and consult your financial adviser before making any investment decision. Mirror-Mag cannot be held responsible in the event of bad investments. Before using any third-party service, you should do your own research.