In which phase exactly are we in Ethereum’s bull cycle? That is the million dollar question top of mind of every investor. This market cycle model that is helpful to answer this question.
As seen on the chart every bull market goes through an acceleration phase, after smart money and institutional investors got it. Those market participants always get in very early, at the start of a new trend. That is how to create the highest profits.
Once the bull trend accelerates, prices rise in a parabolic fashion. In order to recognize this phase, apart from a parabolic rise in the price of the asset, we can identify the following symptoms (in the order outlined below):
- increase media attention
- general enthusiasm, in large public
- the belief that new paradigm has been established
Anyone recognizes these symptoms? Financial media started very recently to pay attention. An increasing number of people in your own environment is talking cryptocurrencies. People start asking you questions if they know you are into cryptocurrencies. The first signs of greed are there, though there is still room for more greed.
We are nowhere near a point yet that people believe in a new paradigm.
That said, we believe that the price of Ethereum has started the mania phase, but has not fully completed yet. Greed is not that strong at this point, many investors who got in recently are still fearful because of the digital aspect of Ethereum and cryptocurrencies. We don’t see the belief in a new paradigm yet.
This market cycle suggests there is still upside potential in Ethereum’s price. Once people believe Ethereum has established a new paradigm it is time to get out!