As Ethereum recovers from the low set at $695.08 on February 5, 2018, the expected upside targets are as follows:
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$1,040.05
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$1,231.58
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$1,385.02
The upside targets are represented on the short term chart below.
Ethereum holders would justifiably ask, “why apply an indicator normally used for stocks to my currency?” The reason Dow Theory is applied to anything is because the price is a reflection of human action and reaction. This (human behavior) never changes regardless of the price it is applied to.
Ethereum holders accurately point to the possibility that this time next year, Ethereum will be at $30,000 or higher. We don’t contest this, however, we know for a fact that the above upside targets must be achieved in order for any of the exceptional upside projections can be realized.
Failure of the price of Ethereum to achieve the $1,040.05 by a substantial amount ($1,111 or more) would be an indication that the price will retest the $695.08 level. A retest of the $695.08 level without falling below the level would be constructive for a new bull market. It would be a second failure to decline below the $692.99 level. According to Dow Theory, this would one of the most constructive bullish indications going forward.
Alternatively, if Ethereum fell below $692.99 then the expectation is that $617.09 is the minimum downside target.