Ethereum: Above and beyond
As bitcoin continues its parabola, Ethereum has been slowly and sneakily gaining momentum, per the previous newsletter.
Indeed, Ethereum leaped well-beyond the $850 figure to $1,160 in just a matter of hours.
That’s a 51% jump in a little over 24-hours.
As it happens, Ethereum is still under its all time high at $1,380.
In retrospect, this price will appear cheap the same way a $20,000 bitcoin is relatively cheap today. Of course, there are no shortage of naysayers, but decentralised financial products with real use-cases such as USDC yield-farming on SwissBorg are real.
There are hundreds of projects, many of which are complete garbage, but others which offer good value (in light of zero or negative yielding bonds).
Technically, Ethereum also appears to have bottomed out against Bitcoin for the time being.
A few weeks ago we discussed the likelihood of the ETH/BTC pair trending towards 0.05 Satoshis in 2021 in the telegram channel. It appears that this thesis is about to play out as various confluent factors come together.
In the last few hours, ETH/BTC tapped the 0.0349 weekly resistance level before cooling off. That’s a 51% impulsive move in the ETH/BTC pair in less than 48-hours; if that’s not a reversal signal I do not know what is.
Ethereum bulls will attempt to breach this level irrespective of what occurs in both the bitcoin and ethereum USD pairings.
As such, at the time of writing, it’s safe to say that strong attempt to reverse the trend is underway. But a weekly super-trend confirmation would cement this thesis further, per the above chart.
As bitcoin redefines scarcity into an absolute tamper-proof digital format, Ethereum is showing itself to be the burgeoning go-to platform for decentralised finance.
This time, let’s get rid of the Ponzi’s and pay more attention to the good actors in the space (of which there are many).
From a price-perspective (which is what you’re here for), Bitcoin is clearly in a parabolic trend, and all parabolas end with steep euphoric rises and subsequently massive crashes. This one will be no different, which is why taking profits on the way up is paramount for any strategy.
Should bitcoin break and close below $27,700 on the daily time-frame, then a deeper and longer correction is likely, at which point investors should act accordingly.
Either way, the next significant correction — which could last anything between 2–4 weeks — will be an opportunity for those who missed out to get in. Don’t miss it.
Catch you next time.