The importance of buying ETH below its 200 week moving average
On the Coinbase ETH chart, the 200 wma (or approximate 4 year moving average) was first showing up in Mar 2020 near the COVID low. If you had bought the 18 weeks ETH was under the 200 wma and put in $1000 each week, then your $18000 would have bought about 100 ETH at a DCA of $180 each.
If you would have just held those 100 ETH until not the $4384 May 2021 and Nov 2021 $4867 tops but sold at $3600, then those 100 ETH would have been sold for $360,000 and you would have made a $342,000 profit. You would have made 20 fold on your investment.
Let's say you reinvest your profits when ETH falls below the 200 wma again in June 2022. You invest this time $10000 each of 4 weeks ETH is below the 200 wma. Your $40000 investment buys about 35 ETH at a DCA of about $1140.
From Nov 2022 to Jan 2023 ETH was below the 200 wma for 9 weeks. Once again you put $10000 each week into ETH for a $90000 investment, buying 73.8 ETH at a DCA of about $1220 per ETH. You now have a $130,000 investment and have bought 108.8 ETH at a DCA of about $1195.
Now once again since the beginning of Sep 2023 ETH is once again below the 200 wma. These 7 weeks you invest $10000 per week for a total of $70000, buying 43.2 ETH at a DCA of $1620 per ETH. You now have a $200,000 investment and have bought 152 ETH at a DCA of $1316 per ETH.
In the last bull market at the top ETH hit $4384 in May 2021 when the 200 wma was $493.46. ETH was 8.9 fold the 200 wma at the time. In Nov 2021 ETH double topped at $4868 when the 200 wma was $835.97. ETH was 5.8 fold the 200 wma at that double top. The average fold ETH was to those two 200 wma's at the tops was 7.35.
Let's say in the coming bull market that IMO will top around Oct 2025, ETH reaches $10000 when BTC is conservatively $150,000 in Oct 2025. You sell at $10000 per ETH which is 7.6 times your $1316 per ETH DCA. You just sold your $200,000 ETH investment for $1,520,000 for a profit of $1,320,000. Now you see the importance of DCA'ing ETH when the price is BELOW the 200 wma.
If you would have just held those 100 ETH until not the $4384 May 2021 and Nov 2021 $4867 tops but sold at $3600, then those 100 ETH would have been sold for $360,000 and you would have made a $342,000 profit. You would have made 20 fold on your investment.
Let's say you reinvest your profits when ETH falls below the 200 wma again in June 2022. You invest this time $10000 each of 4 weeks ETH is below the 200 wma. Your $40000 investment buys about 35 ETH at a DCA of about $1140.
From Nov 2022 to Jan 2023 ETH was below the 200 wma for 9 weeks. Once again you put $10000 each week into ETH for a $90000 investment, buying 73.8 ETH at a DCA of about $1220 per ETH. You now have a $130,000 investment and have bought 108.8 ETH at a DCA of about $1195.
Now once again since the beginning of Sep 2023 ETH is once again below the 200 wma. These 7 weeks you invest $10000 per week for a total of $70000, buying 43.2 ETH at a DCA of $1620 per ETH. You now have a $200,000 investment and have bought 152 ETH at a DCA of $1316 per ETH.
In the last bull market at the top ETH hit $4384 in May 2021 when the 200 wma was $493.46. ETH was 8.9 fold the 200 wma at the time. In Nov 2021 ETH double topped at $4868 when the 200 wma was $835.97. ETH was 5.8 fold the 200 wma at that double top. The average fold ETH was to those two 200 wma's at the tops was 7.35.
Let's say in the coming bull market that IMO will top around Oct 2025, ETH reaches $10000 when BTC is conservatively $150,000 in Oct 2025. You sell at $10000 per ETH which is 7.6 times your $1316 per ETH DCA. You just sold your $200,000 ETH investment for $1,520,000 for a profit of $1,320,000. Now you see the importance of DCA'ing ETH when the price is BELOW the 200 wma.
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