Let’s start with the price of gold. It may be a sign of something, as no one cares anymore. Emphasize “power”. When you have a hot new cryptocurrency every hour and the fiery stock market doesn’t stop, why are you looking like a boring precious metal like the last century?
Recall that the old Jonathan Sax quotes about investing. “The wisest rule in investing is to buy when others are selling. Sell when others are buying. Usually, of course, we do the opposite. When everyone else is buying, we think they know what we don’t know, so we buy. Then people start selling, panic begins, we sell too increase.”
This is Monthly gold chart:
From the 2008 low of 85o to the current price of 1833 has more than doubled. This was previously considered a decent return, but now it’s a “hoham” when compared to cryptocurrencies. Note that despite selling from mid-2020 to this point, gold is on an upward trend, well above the cloud of Ichimoku (mixed moving averages).
This is Gold daily chart:
Two items that price chart analysts are interested in here: 1) The lows in early August reach the lows in March and April, but the MACD indicator (below the price chart) is aggressive from the price. It deviates. Its moving average convergence / divergence measurements may give off a bullish atmosphere.
2) The downtrend line (red dotted line) connecting the highs in early June and the highs in mid-June has finally broken through this week. Is it a wake-up call or a false signal? What can happen — these are volatile global markets — but price behavior here is changing.
Ethereum daily chart Here is an example of a violating downtrend line.
Connecting the two summer highs gives a downtrend line. You can see that it is broken above in late July. See the price action after that. Artificial intelligence, machine learning, and real humans pay attention to this kind of movement, which all works.
Ethereum monthly chart Even more attractive:
The May-July sale is definitely over. Its August closing price was the highest ever for cryptocurrencies and was already above it in early September. Mid-May highs before exceeding 4250 can be a significant resistance zone. This means that some holders may find it comfortable to sell because they missed it last time.
Compare this with Bitcoin Monthly Chart:
For Bitcoin, there is no new monthly high, whether on a closing basis or not. If you hear that Ethereum may be overtaking it as the leading cryptocurrency, you can double-check this chart and the chart above. Money seems to be choosing one or the other.
It is not investment advice. Do your own research and be sure to consult your registered investment adviser before making a decision.