Ethereum: everything you need to know!
A lot of bullish talk and speculation about Ethereum's upcoming London hard fork has led to substantial price increases for the world's second biggest cryptocurrency. A reason to run to the bank and go all in? Well, if only it would be that easy...
LONDON UPGRADE: EIP-559
The London hard fork (aka EIP-559) is a very bullish event for Ethereum and it is a necessary upgrade for the future of the network. It getting rid of the mining fee bidding model and replaces it by fixed fees which partially getting burned by the Network. In essence this will make Ethereum a deflationary digital asset - however; here's the catch: just not straight away! This is where most youtubers and traders get it wrong; EIP-559 will make Ethereum deflationary (over time!) depending on its network activity / usage. It is estimated that this would happen around the launch of ETH 2.0 and not tomorrow as most people think!
ETH FOUNDATION VS. MINERS
Although the upgrade will be positive for the users of the Ethereum network, it will have a negative impact on miners. Even though many of the large miners have recently backed the upgrade - they have been very critical in the past - and nothing withholds them to switch to another blockchain if they deem it more profitable. This is why we should keep a close look on the hash rate of Ethereum to check whether miners stay loyal or some opt out of the network in favor of (for example) Ethereum classic. I don't see any future for the latter but it is still popular amongst traders - and miners don't mind some increasing short term gains.
TA FOR ETHEREUM
TA-wise; Ethereum looks bullish for the mid and long term, this is why I will brand this idea as "long", however on the short term we can expect a correction; coming out of an M formation and dropping out of our price channel. We could retrace to at least the neckline of the bigger W formation created in the last months and if we hold there and create a new impulse to the upside; we can expect Ethereum going for the 3K usd zone. If however, the "sell the news" event is triggered and we have a dropping hash rate; Ethereum could retrace back to the liquidity zone or lower. If Ethereum drops below the liquidity zone, that should act as strong support, we should be very wary of the crypto market in general. Staying above our lowest low is by all means crucial and a bullish Ethereum is by all means crucial for an healthy crypto market. Whereas most people look at Bitcoin; I have my eyes are mostly on Ethereum - which - with its London hardfork edges closer to a new era of the crypto markets; one that is led by Ethereum.
NOTE: please support my research and TA with a like, comment or a follow so more people can be educated about the crypto markets and receive realistic, free and transparent technical analysis! If you would like to join our community, you can do so in through the link in bio. You can have a look at my previous idea of last week and see the fractional disparity between Ethereum and the total market as a whole. Good luck and trade safe!
IMPORTANT: this is not financial advice, trade or invest based on your own risk and research.
LONDON UPGRADE: EIP-559
The London hard fork (aka EIP-559) is a very bullish event for Ethereum and it is a necessary upgrade for the future of the network. It getting rid of the mining fee bidding model and replaces it by fixed fees which partially getting burned by the Network. In essence this will make Ethereum a deflationary digital asset - however; here's the catch: just not straight away! This is where most youtubers and traders get it wrong; EIP-559 will make Ethereum deflationary (over time!) depending on its network activity / usage. It is estimated that this would happen around the launch of ETH 2.0 and not tomorrow as most people think!
ETH FOUNDATION VS. MINERS
Although the upgrade will be positive for the users of the Ethereum network, it will have a negative impact on miners. Even though many of the large miners have recently backed the upgrade - they have been very critical in the past - and nothing withholds them to switch to another blockchain if they deem it more profitable. This is why we should keep a close look on the hash rate of Ethereum to check whether miners stay loyal or some opt out of the network in favor of (for example) Ethereum classic. I don't see any future for the latter but it is still popular amongst traders - and miners don't mind some increasing short term gains.
TA FOR ETHEREUM
TA-wise; Ethereum looks bullish for the mid and long term, this is why I will brand this idea as "long", however on the short term we can expect a correction; coming out of an M formation and dropping out of our price channel. We could retrace to at least the neckline of the bigger W formation created in the last months and if we hold there and create a new impulse to the upside; we can expect Ethereum going for the 3K usd zone. If however, the "sell the news" event is triggered and we have a dropping hash rate; Ethereum could retrace back to the liquidity zone or lower. If Ethereum drops below the liquidity zone, that should act as strong support, we should be very wary of the crypto market in general. Staying above our lowest low is by all means crucial and a bullish Ethereum is by all means crucial for an healthy crypto market. Whereas most people look at Bitcoin; I have my eyes are mostly on Ethereum - which - with its London hardfork edges closer to a new era of the crypto markets; one that is led by Ethereum.
NOTE: please support my research and TA with a like, comment or a follow so more people can be educated about the crypto markets and receive realistic, free and transparent technical analysis! If you would like to join our community, you can do so in through the link in bio. You can have a look at my previous idea of last week and see the fractional disparity between Ethereum and the total market as a whole. Good luck and trade safe!
IMPORTANT: this is not financial advice, trade or invest based on your own risk and research.
Comment:
FYI: standard practice is a stop hunt rise; retest neckline as resistance and continuation to the downside. If we break the neckline with heavy volume, I guess the market doesnt care about whats (actually) going on and just goes for the moon instead or forms a triple top. Lets wait and see, on spot positions you can lean back and enjoy. :)
Comment:
Zoom in on chart: Neckline hit, rejection there inside the red box (look at the wick). More downside is coming. I expect ETH to stay inside the bear pennant (dotted lines) for a while to confuse traders and fall further this night during the asian session. Nothing is a certainty in trading so lets see what happens...
Comment:
Lets go up! :) This is why I said, dont short, dont long; just hodl.
Comment:
Here's your ETH at 3K alert!
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