Whatâs up traders. In todayâs trading idea, we discuss our thoughts on Ethereum.
Taking a look at the Daily chart, weâve mapped out a few key levels & zones.
The story for Ethereum will be similar to our previous post on Bitcoin, in terms of where we think the 2nd largest crypto is headed.
If you havenât heard, the Ethereum network is about to undergo the highly anticipated Shanghai upgrade on April 12th.
Simply put, this upgrade will allow investors (validators of the network) to withdraw their ETH that has been staked since December of 2020 (massive unrealized gains sheesh).
Right now, staked ETH accounts for 1/7th of the entire supply, 16 million tokens valued at over HKEX:26 billion.
Will a massive price dump follow?
Without diving too deep into the technicalities of the Shanghai fork, a subsequent dump could likely be in the cards.
Scenario 1: Bull Case
We see a continued push from Bitcoin, driving Ethereum up. Weâre currently in an ascending triangle / bull flag, so a breakout to previous highs wouldnât be surprising. HKEX:2,000 ETH definitely in the cards (Round number pseudoscience).
If we can surpass the 2K barrier, consolidate above combined with a bullish Bitcoin. Taking longs right now donât sound too shabby.
Scenario 2: Bear Case
The bearish scenario would entail a âBuy The Rumor, Sell The Newsâ situation. Where this push weâve witnessed in recent days/weeks is due to the hype surrounding the Shanghai Upgrade.
A dip back down the 1400-1500 levels might be a solid spot if you want to look at getting long. If we see a severe dip from Bitcoin, and end up retouching the 1000-1200 levels. Weâd be looking to buy & hold as those prices would be quite appetizing.
As always, NONE of this is financial advice. Trade, and invest at your own risk. This is for educational and entertainment purposes only, and we are in no way shape or form financial advisors.
Eyes peeled out there team. See ya in the next one.