Ethereum has started to move sharply yesterday and today, now nearing its previous peak made in Feb. If it rises over peaks from Feb 2020 and July 2019, it could very well be starting another big bull run to eventually challenge past highs over $1500.
Ethereum is the next largest crypto by market cap after Bitcoin, but IMO has significantly more potential. Bitcoin was first and has the name recognition, but technically and developmentally ETH makes bitcoin look like a simple, stagnant toy. Where bitcoin is a form of digital property (sometimes called digital gold), ETH started with bitcoin's consensus network innovation and built a programmable layer on it. This allows ETH to be (among other things), the basis of an entire universe of programmable digital finance. Consequently, ETH is already arguably more important than bitcoin, and I'm in the camp that expects ETH to one day overtake bitcoin's market cap (something it almost did back in early 2018).
Since bitcoin's inception, the price move pattern of the larger cryptos has been massive bull moves followed by long periods of pullback and consolidation where price stagnates. The last few years have been a period of consolation for ETH and bitcoin and another bull run could be ahead. For ETH, watch for breakouts over the peaks of the last few failed runs (show on the chart) for indication of a possible bull run.
I haven't been following crypto that closely the last couple years, but the movement in ETH might be due to the long awaited "ETH 2.0" update due the end of this year. The update improves the scaling of the system and starts to move away from a bitcoin-like "mining" strategy to a newer staking strategy. Rewards given to ETH holders that participate in the staking strategy could drive more people into ETH.
Ethereum is the next largest crypto by market cap after Bitcoin, but IMO has significantly more potential. Bitcoin was first and has the name recognition, but technically and developmentally ETH makes bitcoin look like a simple, stagnant toy. Where bitcoin is a form of digital property (sometimes called digital gold), ETH started with bitcoin's consensus network innovation and built a programmable layer on it. This allows ETH to be (among other things), the basis of an entire universe of programmable digital finance. Consequently, ETH is already arguably more important than bitcoin, and I'm in the camp that expects ETH to one day overtake bitcoin's market cap (something it almost did back in early 2018).
Since bitcoin's inception, the price move pattern of the larger cryptos has been massive bull moves followed by long periods of pullback and consolidation where price stagnates. The last few years have been a period of consolation for ETH and bitcoin and another bull run could be ahead. For ETH, watch for breakouts over the peaks of the last few failed runs (show on the chart) for indication of a possible bull run.
I haven't been following crypto that closely the last couple years, but the movement in ETH might be due to the long awaited "ETH 2.0" update due the end of this year. The update improves the scaling of the system and starts to move away from a bitcoin-like "mining" strategy to a newer staking strategy. Rewards given to ETH holders that participate in the staking strategy could drive more people into ETH.
Comment:
Another point worth mentioning... I think it's likely both bitcoin and ETH can get back to all time highs. However if Bitcoin goes back its all time high from today's price, it will have made a return of a bit over 100%. If ETH goes back to its all time high, it will have made a return of over 400%.
Comment:
We've broken over the resistance levels in the chart above and are approaching the $350-$365 range where the resistance from the highs of June 2019 remain. ETH is once again gaining attention and excitement, and I think it's just beginning. I'm very bullish, however the real resistance will be at $400 as that's been significant resistance (and support) multiple times in 2017 and 2018. If $400 is broken without much trouble that will be huge.
ETH has already moved up 50% this month and there could easily be a pullback at some point before $400 is challenged. However I'm bullish so I'm long, end of story. Even if we collapse back below $200 again I'm just going to hold for the next year or three. I think the big price correction finished in 2018 and the next big trend will be up, and might have already started.
ETH has already moved up 50% this month and there could easily be a pullback at some point before $400 is challenged. However I'm bullish so I'm long, end of story. Even if we collapse back below $200 again I'm just going to hold for the next year or three. I think the big price correction finished in 2018 and the next big trend will be up, and might have already started.
Comment:
That was quick! ETH has blown past every resistance point right up to $400 and it is just below $400 as I write this.
