Old Ethereum Forecast Out the Window: Why $1,000 Is the New 2017 Year-End Target
Profit Confidential
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Old Ethereum Forecast Out the Window: Why $1,000 Is the New 2017 Year-End Target At the moment, the biggest problem in cryptocurrencies is this: Prices are rising faster than expected. It is an enviable problem, especially if you're already invested in cryptos.
But what if you're late to the party? Have you already missed the buffet of big returns, or are there more gains to come? In this writer's opinion, you needn't worry. There is still tremendous upside for many cryptos. And yes, that includes Ethereum (ETH). Just to give you a sense of how fast this market is growing, take a look at our previous forecasts for ETH. We thought it would reach $400.00 in 2017 and $1,000 in 2018. It turned out that these forecasts were absurdly tame, though some people called them "outrageous" at the time. Now, our prediction for 2017 is a tiny dot in the rearview mirror. We even raised our 2018 Ethereum price forecast to $1,500.
The rapid evolution of these forecasts is not a coincidence. Cryptocurrencies are at the bleeding edge of science, meaning that new stuff is happening every day. It's journalistic bliss to write about them, but it means we need to update our forecasts whenever we get new information.
With this in mind, we are issuing a special alert that ETH might hit $1,000 by New Year's Eve. Why? Well, because we may hear about an upcoming Ethereum futures contract. Just read this quote from billionaire hedge fund manager Mark Novogratz. "All of these guys are looking at this as a potential asset class," he said about the Chicago Board Options Exchange's (CBOE) Bitcoin futures contract. "Mark my words, when Goldman Sachs starts trading it, you're going to see the big pensions start coming in." Most analysts are honing in on the latter half of his quote. It would be big news if pension funds started investing in cryptos. But I'm more interested in the first part where he calls it a "potential asset class." That is telling. The recent bull run in cryptos was sparked by the Chicago Mercantile Exchange (CME) and CBOE adding a Bitcoin futures contract to their respective markets. It was an experiment. If it failed, cryptos would have been set back by months. But it was a resounding success, which naturally implies that Wall Street titans will start to expand the asset class. Novogratz isn't the only one to imply such an expansion. ConsenSys CEO Joseph Lubin made similar comments recently. When he was asked a direct question about the timeline for an ETH futures contract, he said that "months would be a long, long time." In other words, he wouldn't be surprised if it happened soon. Last week, the Ethereum to USD exchange was already in the $700.00 range. So it's not like our new Ethereum price forecast is much of a stretch. This currency is already well on its way to $1,000.
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Has a New Bull Market in Valeant Stock Just Begun? In January of this year, I wrote an article titled, "Valeant Stock: 2017, The Year VRX Stock Turns It Around." It's now time to rejoice in this festive season because those words have finally come to fruition, and I have all the reason to believe that Valeant Pharmaceuticals Intl Inc (NYSE:VRX) stock has finally put in a bottom.
These reasons are all technical in nature, which means the indications on the stock chart are suggesting that Valeant stock is likely to appreciate. Using indications generated on company's stock chart in order to base a view on it is a method of analysis called technical analysis. This method is based on the notion that historical data points can be used to forecast what the future may bring. I have been using and applying this method for almost two decades and I feel am well equipped to take on the task of forecasting what is in store for VRX stock. The first indication that suggested that Valeant stock was putting in a bottom was generated in May of this year. This indication is highlighted on the following stock chart.
The indication highlighted on the VRX stock chart is the moving average convergence/divergence (MACD) indicator. MACD is a momentum indicator that uses the crossing of a signal line to distinguish between bullish and bearish momentum. This information is very important because a stock cannot stage an advance or a decline without the applicable momentum influencing it.
I have highlighted the two instances where a MACD cross was generated. In September 2015, a bearish MACD cross was generated. It indicated that bearish momentum was influencing the price action in Valeant stock and, therefore, the stock was geared toward lower prices. This stock proceeded to fall from $177.09 to $8.31, losing 95.4% while this indicator was in bearish alignment, illustrating the significance of this indicator. That is why, when a bullish cross was finally generated in May of this year, I knew that a bottom was being formed because bullish momentum was once again paving the road toward higher prices. The next indication suggesting that a bottom was being put into place was generated in July, and it is illustrated on the following VRX stock chart.
The indication highlighted on this Valeant stock chart is a golden cross. This indication was created in July when the faster 50-day moving average, highlighted in blue, crossed above the slower 200-day moving average, highlighted in red. A golden cross is a signal that indicates a bull market is in development. What makes this signal special is that this is the first time that the moving averages have been in bullish alignment since October 2015. Now that a golden cross has been created, this is not an indication to be taken lightly. The MACD indicator and the golden cross are enough to suggest that higher VRX stock prices are likely to prevail, but there was a line in the sand that needed to be crossed in order to confirm it. This line in the sand is highlighted on following stock chart.
The level of resistance, which resided at $18.50, was my line in the sand, and it has been the subject of many of my publications regarding Valeant Pharmaceuticals. Ever since Valeant fell below this price point in November 2016, every attempt to move above it has been thwarted. I have stated in numerous publications that, in order to confirm the notion that VRX stock has finally bottomed, the stock price needs to break above this level of price resistance. On December 8, Valeant shares finally broke above resistance. The combination of this feat and the signals that came before it is enough to suggest that a bottom has finally been put in and, therefore, the stock price is free to appreciate. I am bullish on Valeant stock because the indications on the company's stock chart are suggesting that the bear market that pillaged the share price has finally run its course, which means that VRX stock can now embark on a move toward higher prices.
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