Below is the chart of Ethereum. We know all about crypto, right? Going to change the world with blockchain, smart contracts, and digital currency, yes? Not a chance.
Crypto has become nothing more than a proxy for equity enthusiasm. It might as well be the SPDR® S&P 500 (NYSE:SPY). Honestly. Crypto has almost NO purpose except to serve as just a different flavor of equity ETF, so it merits observation by stock people.
Not convinced? Below I’ve used layered charts to plop the SPY on top of $ETH. They may stray from time to time like wayward planets, but they inevitably clamp right back together.
The reason this is particularly important is the right triangle pattern in the formation below. If $ETH breaks above that red line, the words “bear market” will cease to pass through my lips for a long time. It would be the death blow.
Here’s one more SPY/ETH chart to show the longer-term correlation, which is just about 1.0
