DISCLAIMER: The following is not financial advice. Invest at your own risk.
This is part 2 of the 10 part series of 10 Cryptocurrencies you should invest in 2021 to have exponential returns in the future.
The investment strategy centers on fundamentals and predictive models. It assumes all exponential assets obey the following:
Volume and Price action is everything.
Price always reaches the upper band (green in color in the chart) of the previous cycle high.
Ignores black swans and outliers ("A black swan is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences.")
Price always regresses to the mean: Fibonacci zone 50%.
Each cycle's return diminishes by Fib levels: 100% to 78.6% to 61%
Why you should invest in Ethereum:
Projected ROI on Log Scale: 3000%
Price Target: 7000$ to 16000$
Maximum Drawdown on Log Scale: 100 to 200%
Risk/Reward: 30X
Expected timeline: 1 to 3 years (Please note the predictive model doesn't predict time period. It simply predicts price projection)
Grayscale Ethereum Trust Returns using a predictive model is surprising. See this chart:
Historic Ethereum Chart:
Fundamentals of Price Movement:
Ethereum's historic return is directly correlated to Bitcoin's return. In a bull cycle, ethereum usually overperforms. Ethereum to Bitcoin Return ratio is somewhere between 1.5 to 2.6, which means multiply by this ratio the return of Bitcoin to find Ethereum's Return.
Massive inflows of Smart Money and peak interest from institutional investors in Bitcoin, which means the next crypto to flow money into is Ethereum and other major altcoins based on Market Capital.
Altcoins are one cycle behind bitcoin, which means the return in altcoins will be 2X to 5X, even 10X, the return of Bitcoin.
Ethereum is the 'Google' or 'Microsoft' of the decentralized applications for your favorite crypto project. It's a monopoly.
Total Crypto Market Cap Excluding Bitcoin expected to reach 2.5 to 5 trillion in this cycle. See the chart below:
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