I have severe reservations about Ethereum, or ETH.

On price action, the daily ETH chart from GDAX looks like it is going for another leg down after a small bounce. My initial target of 260 was nearly hit, and I think there's more downside there.

The other problem is one of scaling -- the ETH network has ramped up confirms, which means it produces more blocks. This means that there are higher storage requirements for the ETH blockchain. It is estimated that by the end of this year, it could be close or exceed 1 TB in size.

Compare this to Bitcoin, which has been around for 8.5 years and only has a chain about ~131 GB. A difference of 86%! This isn't sustainable if they are trying to put more ICO's on the ETH platform.

It also has a problem with the market absorbing the huge amount of mined ETH - 26,205 are mined every 24 hours compared to 1,838 BTC. That means that the market has to absorb a factor of 1,325% every day!

The Status ICO brought the network to its knees, several wallets had to be deactivated and exchanges stopped processing transactions to cope. That is very worrying.

This leads me to be very wary of ETH as a long term investment. If you trade it on a short-term basis, I can see how you would make money on the swings. But I'm not so sure about it dominating when it has such obvious scaling problems.