Zoom out. Ethereum has hit its local high for the time being going into the summer at $4,300 and now what we're seeing is a capitulation sell off. Ethereum looks like its bottomed out here with the scam wick down to $1,800 with the bottom averaging zone around $2,500 - $2,700, I believe there's going to be a slow reversal and that reversal is going to take about a month or two to happen. From the high of $4,300 to the bottom around $2,500 we dropped 1800 points or around 43% so to recoup on those losses if you bought the top, investors would need to make 85% just to break even. Let's say ETH does perform and gain 85%, that's going to take some time.
ETH is still waiting on EIP-1559 to fix its gas fees and clear up the congestion on the network and I think that the EIP is going to perfectly time with the markets and pump through that news. This is one of the biggest updates as it transitions to 2.0.
What is EIP-1559?
It will replace the variable first-price auction model currently used to decide Ethereum transaction fees with a more deterministic base fee model. This will remove much volatility and uncertainty associated with paying the gas fee.s
$2,700 - $3,400 is where a good Spot entry is for the long term and if you can snipe it a goated entry would be underneath $2,000 at this point.
This most recent dump down we backtested $2,000 (1.0 Fib) resistance which hasn't really been backtested other than twice in April. For the 1st time since the beginning of April we came back down to the $2,000 (1.0 Fib) level and wicked that as a backtested level of support.
ETH is going to continue to trend in this channel until the middle of July when EIP-1559s is launched. From there the 5k price target is valid and we're going to create higher highs.
ETH is still waiting on EIP-1559 to fix its gas fees and clear up the congestion on the network and I think that the EIP is going to perfectly time with the markets and pump through that news. This is one of the biggest updates as it transitions to 2.0.
What is EIP-1559?
It will replace the variable first-price auction model currently used to decide Ethereum transaction fees with a more deterministic base fee model. This will remove much volatility and uncertainty associated with paying the gas fee.s
$2,700 - $3,400 is where a good Spot entry is for the long term and if you can snipe it a goated entry would be underneath $2,000 at this point.
This most recent dump down we backtested $2,000 (1.0 Fib) resistance which hasn't really been backtested other than twice in April. For the 1st time since the beginning of April we came back down to the $2,000 (1.0 Fib) level and wicked that as a backtested level of support.
ETH is going to continue to trend in this channel until the middle of July when EIP-1559s is launched. From there the 5k price target is valid and we're going to create higher highs.
