Ethereum is THE Crypto to Own and It's about to Break Higher
Ethereum is the crypto to own. It takes some time to understand especially for those that don't program, but simplistically Ethereum is bitcoin plus programmability. There are other coins that have copied the idea, but Eth is the leader, has remained decentralized (unlike many competitors), and will be extremely difficult to displace. Ethereum is such a big thing that except for bitcoin and a few bitcoin clones, most of the crypto space is either running on Ethereum, comes from Ethereum, or adds to the Ethereum space. Ethereum is driving crypto, and to not own ETH is to be clueless where crypto is going.
Ethereum is in so much demand its fees and scaling are an ongoing issue (a nice problem to have). Scaling and fees are being addressed, but realistically will probably remain an issue for a while into the future as there will always be new projects and new demand to apply pressure to fees even as multiple orders of magnitude in scaling come online with rollups and sharding. That's how important Ethereum is. Expect an ongoing pattern: In periods of low fees the whole crypto world will come. When the fees increase the biggest, most popular, and most successful projects will run on Ethereum leaving lesser projects to move to competing and secondary blockchains. Eventually the devs deploy another scaling solution and the cycle repeats.
On the chart we see the price is forming a nice cup and handle just under all time highs. A breakout higher and continuation of price discovery could happen at any time. However trading patterns are irrelevant with Ethereum to me because I don't ever intend to sell. This is a crypto I will continue to accumulate, stake for returns, and hold forever as a core asset. Odds are Ethereum will continue to appreciate while generating income for decades to come. It's only getting started. Every year there is a new groundbreaking Ethereum use case. I want to be on this train as it takes over the world.
This is not investment advice, these are my own opinions and I'm not an investment adviser.
Ethereum is in so much demand its fees and scaling are an ongoing issue (a nice problem to have). Scaling and fees are being addressed, but realistically will probably remain an issue for a while into the future as there will always be new projects and new demand to apply pressure to fees even as multiple orders of magnitude in scaling come online with rollups and sharding. That's how important Ethereum is. Expect an ongoing pattern: In periods of low fees the whole crypto world will come. When the fees increase the biggest, most popular, and most successful projects will run on Ethereum leaving lesser projects to move to competing and secondary blockchains. Eventually the devs deploy another scaling solution and the cycle repeats.
On the chart we see the price is forming a nice cup and handle just under all time highs. A breakout higher and continuation of price discovery could happen at any time. However trading patterns are irrelevant with Ethereum to me because I don't ever intend to sell. This is a crypto I will continue to accumulate, stake for returns, and hold forever as a core asset. Odds are Ethereum will continue to appreciate while generating income for decades to come. It's only getting started. Every year there is a new groundbreaking Ethereum use case. I want to be on this train as it takes over the world.
This is not investment advice, these are my own opinions and I'm not an investment adviser.
Comment:
Nice breakout to new highs. The bull run continues. I suspect ETH has a long way to go still.
Comment:
ETH price is continuing the move to new all time highs today. These new high moves in ETH have been fairly subdued. Later in the bull run I expect it will make much larger and stronger moves, while the moves lately are still fairly small and don't attract a ton of attention yet.
This isn't investment advice, but I'm unbelievably excited about Ethereum for later this year. Ethereum is popular and has very high fees as a result as I've explained before. There are literally billions of dollars worth of ETH in transaction fees being sold back onto the market by miners on a regular basis. Starting in July transaction fees will be "burned"--literally destroyed rather than given to the miners to be sold. Miners will still get a "tip" and it's not known how much that will end up being, but there will still likely be literally billions of dollars worth of ETH going from being sold back onto the market to being destroyed. This will result in a sudden, huge shift in the available supply of ETH on the market likely to a significant undersupply, similar to a stock buyback. Even with the high fees being sold back onto the market today, ETH is moving up to new highs. When those fees start being burned instead, the price upside could be surprising to say the least.
The above undersupply might actually become even more extreme into next year as Ethereum switches from mining to Proof of Stake. At that change miners will be completely removed, and even any "tips" paid to them will no longer be sold back onto the market. Additionally, all newly created ETH (paid to "stakers" rather than miners to maintain the network) might remain locked up in a staking contract that stakers are temporarily unable to withdraw. That means for a period of time, ETH fees will be burned, no miner "tips" will exist to be sold back into the market, and all newly created ETH will be unable to be withdrawn--essentially ETH will become hyper-deflationary likely leading to mind-blowing price increases! The excitement will expand the usage on the network, leading to higher fees, leading to even more ETH being burned, and even more extreme deflation and price increases in a virtuous cycle. Prices, network usage, and fees might spike up insanely high leading to some of higher ETH price targets you might have heard about... *cough* $10,000 *cough* (not investment advice). I haven't heard anyone talking about the hyper-deflationary possibility so far, so I don't think the market has understood the potential yet. Needless to say I'm very long ETH.
This isn't investment advice, but I'm unbelievably excited about Ethereum for later this year. Ethereum is popular and has very high fees as a result as I've explained before. There are literally billions of dollars worth of ETH in transaction fees being sold back onto the market by miners on a regular basis. Starting in July transaction fees will be "burned"--literally destroyed rather than given to the miners to be sold. Miners will still get a "tip" and it's not known how much that will end up being, but there will still likely be literally billions of dollars worth of ETH going from being sold back onto the market to being destroyed. This will result in a sudden, huge shift in the available supply of ETH on the market likely to a significant undersupply, similar to a stock buyback. Even with the high fees being sold back onto the market today, ETH is moving up to new highs. When those fees start being burned instead, the price upside could be surprising to say the least.
The above undersupply might actually become even more extreme into next year as Ethereum switches from mining to Proof of Stake. At that change miners will be completely removed, and even any "tips" paid to them will no longer be sold back onto the market. Additionally, all newly created ETH (paid to "stakers" rather than miners to maintain the network) might remain locked up in a staking contract that stakers are temporarily unable to withdraw. That means for a period of time, ETH fees will be burned, no miner "tips" will exist to be sold back into the market, and all newly created ETH will be unable to be withdrawn--essentially ETH will become hyper-deflationary likely leading to mind-blowing price increases! The excitement will expand the usage on the network, leading to higher fees, leading to even more ETH being burned, and even more extreme deflation and price increases in a virtuous cycle. Prices, network usage, and fees might spike up insanely high leading to some of higher ETH price targets you might have heard about... *cough* $10,000 *cough* (not investment advice). I haven't heard anyone talking about the hyper-deflationary possibility so far, so I don't think the market has understood the potential yet. Needless to say I'm very long ETH.
Comment:
ETH is moving to all time highs today and even bigger news is the ETH/BTC ratio is moving up to levels not seen in years. This means ETH is rising faster than bitcoin, and implies people are more bullish on ETH and possibly selling bitcoin to buy ETH. Ethereum is now on track to once again challenge or "flip" bitcoin's lead by surpassing bitcoin's market cap. It nearly happened in 2017 and I expect it will succeed sometime this bull run.
With ICOs, DeFi, NFTs and all the possible future inventions that will run on Ethereum, the entire crypto space is now ETH-focused. Bitcoin has done almost nothing since it was invented and doesn't deserve the leadership role as it doesn't lead. So I expect Bitcoin will eventually lose it's top market cap position. Sad but true.
With ICOs, DeFi, NFTs and all the possible future inventions that will run on Ethereum, the entire crypto space is now ETH-focused. Bitcoin has done almost nothing since it was invented and doesn't deserve the leadership role as it doesn't lead. So I expect Bitcoin will eventually lose it's top market cap position. Sad but true.
Comment:
Ethereum has moved up over $1000 since I opened this idea around $1800. ETH has recently doubled it's previous all time high from the last bull run in 2017 (at around $1400), but again I think it's just getting started. Moving it's all time high up 2x is nice, but the potential for a 5x and even more is there. Crypto bull markets can get insane, and I'm still just as bullish as ever.
Comment:
We had a weak summer as tends to happen in crypto, but the summer is coming to an end and Ethereum is consolidating a bit below previous all time highs. I'm expecting ETH to finish the year strongly. I'm not as sure about bitcoin, but bitcoin has its bulls too.
The more anyone looks into ETH the more shocked they'll be that it's so low compared to bitcoin. Ethereum market cap previously came close to flipping bitcoin's market cap during the last bull run, and there's a good chance it will try again this bull run. It might not flip bitcoin, but it could make an effort. And eventually I think it will flip bitcoin--there's so much more going on with Ethereum there is no comparison. Ethereum has become the crypto space now, by comparison bitcoin is a stagnant project.