The recent surge of capital into Ethereum has caught my interest this week. The parabolic moves are getting stronger and the profit potential is too great to pass up.
We can see a parabolic arc almost fully formed near a fairly strong resistance line. Given the current surge, I can see Ethereum hitting $300 simply because people want to see it on their monitor. Shortly afterwards, I suspect a retrace of about 15% will occur, which is a solid buying opportunity.
It's a solid opportunity to buy given this price surge because of a few noticeable things:
1. The decentralized apps on Ethereum are becoming more sophisticated, and the asset is finally diverging from Bitcoin in terms of fundamental value. People see a different potential in Ethereum than Bitcoin, and this will serve to decrease the price correlation between Bitcoin and Ethereum.
2. Due to Ethereum's network effect, it could bubble much higher than Bitcoin due to the individual apps it supports. Many of these applications built on Ethereum have companies formed around them, and they use Ethereum to raise capital. As investors buy the company, they are essentially investing in Ethereum as well. This effect will grow Ethereum exponentially, much like Facebook did in the last decade.
3. If you follow my other charts, you know I am a BTC bull as well. As BTC once again dominates the crypto market over the next year, investors will look to put their capital gains into riskier, but more profitable assets. Ethereum fits the bill perfectly.
Good luck out there!
We can see a parabolic arc almost fully formed near a fairly strong resistance line. Given the current surge, I can see Ethereum hitting $300 simply because people want to see it on their monitor. Shortly afterwards, I suspect a retrace of about 15% will occur, which is a solid buying opportunity.
It's a solid opportunity to buy given this price surge because of a few noticeable things:
1. The decentralized apps on Ethereum are becoming more sophisticated, and the asset is finally diverging from Bitcoin in terms of fundamental value. People see a different potential in Ethereum than Bitcoin, and this will serve to decrease the price correlation between Bitcoin and Ethereum.
2. Due to Ethereum's network effect, it could bubble much higher than Bitcoin due to the individual apps it supports. Many of these applications built on Ethereum have companies formed around them, and they use Ethereum to raise capital. As investors buy the company, they are essentially investing in Ethereum as well. This effect will grow Ethereum exponentially, much like Facebook did in the last decade.
3. If you follow my other charts, you know I am a BTC bull as well. As BTC once again dominates the crypto market over the next year, investors will look to put their capital gains into riskier, but more profitable assets. Ethereum fits the bill perfectly.
Good luck out there!