Why Ethereum May Soon Breakout!
With so much occurring in Bitcoin, from its massive valuation leap to its multiple hardforks, investors have been distracted from considering Ethereum. Coincidentally, the last few months were quiet for the number-two ranked virtual currency, save for a few upside swings. After briefly exceeding $400 territory in mid-June, Ethereum appears to have faded into the background.
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Adding pressure to the digital coin is the presence of hardforked cryptocurrencies. Bitcoin Cash was supposed to act as a competitor blockchain; however, both Bitcoin and Bitcoin Cash have enjoyed tremendously profitable success. During this time, Ethereum slipped from center stage, trading seemingly anonymously around the $300 level. However, looks can be deceiving, and in this case, it’d be a mistake to doubt Ethereum.
Cryptocurrencies in general face an ignorance challenge. Most people are confused about the blockchain, and almost half of Americans believe that Bitcoin ownership is legally questionable. But once the majority of the public understand the implications of cryptocurrencies, we could enjoy yet another massive bull cycle.
But among the top-ranked cryptocurrencies, Ethereum could be on the verge of something special. Here are three reasons why we should expect a breakout soon:
Bullish Pennant
Take a quick look at the Ethereum price action over the past year, and one pattern becomes apparent — the bullish pennant formation. In mid-June, shares eclipsed $400. In early September, Ethereum hit just under $400. The next peak, in mid-October, took the digital coin a few dollars shy of $350.
On the “downside,” however, we see rising support. In mid-July, Ethereum bottomed around $153. In mid-September, the price bottomed at $229. The most recent bottom occurred in the latter-half of October at $284. At some point, the bulls and bears will “finalize” their negotiations, probably to the upside.
Fundamentals Don’t Matter
Whenever the blockchain and cryptocurrencies are discussed, the most common occurrence is an explanation of the underlying technology. For Ethereum, proponents will mention the architecture’s “smart contract” capabilities, or that it’s scaled more efficiently than Bitcoin.
While true, none of it matters. The only thing that matters is speculation. The general public isn’t known for their vast intellectual resources; they just want to make money. When the blockchain becomes more heavily integrated, they’ll look to Ethereum as Bitcoin is too expensive. It’s really that simple.
Flight to Quality
Being number two amongst all cryptocurrencies provides a level of credibility that money simply can’t buy. Sure, there are thousands of blockchain assets available for investing; however, most people can easily determine that the vast majority of cryptocurrencies are questionable investments.
In sharp contrast, Ethereum is accepted virtually everywhere wherever Bitcoin is accepted. As cryptocurrencies rise, I believe we will see a flight to quality. Ethereum simply has the credibility and the confidence that other coins lack.
Could not agree with you more. ETH/BTC ratio is very oversold currently. Most people don't realize ETH releases uRaiden and Zksnarks in few weeks one full year ahead of Bitcoin lightening network. Meanwhile, ETH has made improvements in all ends with first stage of Casper to be released in next the Metro fork upgrade. You made a good point about ETH being used as payments. Most places that accept Bitcoin accept ETH too. This is a recent development most investors are not aware of but the studies show alt coins are being widely adoption as payments across the global. Most Bitcoin ATMs are currently adding ETH and alt coin USD pairs. If we dig in a little deeper a quick scan shows that nearly ever alt coin can now be purchase via online exchanges using ETH. Fundamentals are incredible with Ethereum and by far the most widely adopted blockchain in the world. Transactional volumes are exponentially increases and so is the ETH developer community. Ethereum is currently largest blockchain project in world.
This is a great assessment:
"If we dig in a little deeper a quick scan shows that nearly ever alt coin can now be purchase via online exchanges using ETH"
This is why I'm still long on ETH with a price target of $500 in 2018. I need to thank the bitcoin forks that took all the spotlight, providing me with good buys on ethereum.
Yes, these past few weeks have been a major buying opportunity for top alt coins that have constantly improving fundamentals. I was very luck a few years ago to get into ETH but just added more again recently. Over time the other thing that matters is fundamentals. It was clear ETH ran into a bubble back in late May early June but now with Casper just on the horizon the FOMO will start soon as more and more details emerge on the supply of ETH. People don't realize how little ETH is left to be mined. The gas burning will reduce supply even further in the future. Ethereum is actually backed by a real commodity via validation stake and burning of ETH. My price target on ETH this time next year is around $3000.
Ethereum will rise !!!
Ethereum having better fundamentals DOES matter in the long run. I am certainly hoping to see eth shoot to the moon, but i dont know how soon that will be. Ethereum hasn't been adopted as much by the mainstream media as bitcoin has, nor is crypto really a mainstream thing. But having better fundamentals can only help in the long run. The better the fundamentals, the more sound of an investment you're making, right? I look at it as a low security high reward investment as it can only get bigger as more people figure out exactly what ethereum is
For practical purposes, and the shorter-term time horizon mentioned in my article, not really...the general public just wants to make money. By the time fundamentals matter, the Ethereum price will be quite frothy!
Short term market is a voting machine, long term weighing machine. - Ben Graham
I've also been noticing the rising support. I'm mainly just trading the ETH/USD pairs, but after my last trade (buy 280/sell 295), I doubt we'll see another 280 support level. The next time bitcoin goes up to 7500, I'll trade the BTC/ETH pair instead of the ETH/USD pair.
This is sad but true:
"The general public isn’t known for their vast intellectual resources; they just want to make money."
During the market correction this past summer, I got a great deal on a mining rig/MOBO/PSU combo from a local Craigslist ad. I asked why he was selling it and his answer was "I got into this at the wrong time". He had not done any other research besides getting into ethereum mining from reading an article. I doubt he even knew the difference between bitcoin and ethereum. Sad.
What is your take on EOS, supposedly "the ethereum killer"? Right now it's all talk and like most speculators I'm accumulating it only from a portion of my profits.
EOS has a large niche cut out for them which is running high performance DAPPS. I believe there is great need for this ASAP. Dan says upon launch EOS will handle 1 million transaction per sec. They'll have some big advantages in scaling over Ethereum in short term but even long term as well. I don't one winner take all in smart contracts platform. Probably going to be several big platforms that link together via Cosmos, Polkadot, Aion like an Internet of Blockchains.
been 2nd is good for etherium since now that btc is too expensive for most people , they might look for an alternative and that is where Etherium come in, we might see an influx buying of it and more people are begining to enter the crypto market it will be the next best thing