Ethereum (ETH) is likely to trade higher in the days ahead as the price has remained above the 61.8% Fib extension level despite the hard fork postponement. Investors seem to have overreacted to ETH/USD following the recent announcement but now that the dust has settled, the momentum is starting to shift back in favor of the bulls. It is important to note that at this point, the majority of investors in the market are people with nerves of steel. You are not going to see them fleeing the battlefield on announcements like these. In fact, the most likely scenario is that they are going to take them as opportunities to accumulate more. However, they are not going to do that without waiting for the weak hands to overreact to it first.
Market movements are more a game of psychology than chart analysis. At every point, you have to look at the intent. If you can see the intent, you need not know a thing about technical analysis and you will succeed most of the time. This is why this prolonged bear market has been such a useful lesson for most investors that helped themselves to accept this experience in a meaningful way and to their advantage. The market does not react the same way to news and announcements at every cycle. Why? The reason we have different responses at different parts of a market cycle is because every part of a cycle comprises of different proportions of smart and dumb money.
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