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A lot of people are asking the question, is Ethereum dead? In my opinion the answer is no. I would like to address this from a technical and fundamental perspective. But first, I want to get into the strategy I'm using. If you follow me, you know that my main cryptographic investment / negotiation strategy is using martingale ladders to take a stand.
At the moment my average entry price is just over $ 300. Obviously, this does not work if I had done the scale starting at 800. My average price would be in the 600 most likely range. However, with an average price of 300, we still have a lot of options and we can go up as fast as we get off. If you're in my shoes, it's pretty painful. If you are doing forex trading, stop loss is required to use the stairs; however, in crypto I can go into hodl mode while we wait for a move. Of course this is risky if you believe that Ethereum could go to 0, but I do not think so. It also means that you could hold on to your ether for a long time.
First, why the degradation? The answer is just "cryptographic"? Perhaps the consensus seems to be, at this point, that ETH can not scale. ETH was valid only for ICOs, etc. If anyone has any other reasons, share it. I have the feeling that I would rather be invested in Ethereum, a crypt that has a purpose.
While Bitcoin is beautiful, Ethereum can do all that BTC can do, and do it better. BTC has just been longer, so people trust it. Think of it this way, what is the dollar supporting? (Yes, libertarians, I know the answer can be sustained that it's nothing.) The dollar has value because a country is supporting it, companies use it, and so on. It is not just a means of exchange. I think this is a huge difference between BTC and Ethereum. ETH can run ICOs, apps, etc. What does BTC do? Do you only exchange? There are a lot of long technical papers on the issue and the differences between the two, but in short, they are my 2 cents.
Basically, it does not make much sense for ETH to come down based on the problem of ETH scalability or the ICO problem.
1. Ethereum 2.0 will solve this aspect and improve ETH. Crypto, actions, etc. They are all based on what the future contains and apparently does not act this way on ETH. The only reason I can think of is "why encryption".
2. Futures of Ethereum. Okay, that's why I think it's stupid that so many people are shortly ETH right now. (See below: ridiculous chart). Last year the BTC went from 4.8k to 3k, and futures were announced in the same period. The CBOE is waiting for the approval of the CFTC for the launch of ETH futures. What happens if ETH does the same BTC move? This would put us around ATHs for ETH, about $ 1,400. My $ 300 ETH position will look awfully cheap if that happens.
The technicians.
You can see we're hitting levels in mid-2017 before we have a massive run. I was surprised he arrived here without bouncing. While I do not think it will go over $ 150, this is crypto.
For a big run, we have to break this trend line.
Weekly Chart: We are hitting the oversold territory on RSI.
Daily: the MACD went through, but otherwise we did not do much.
RSI: Check the great divergence and the oversold status. Ridiculous.
Check out this ETH / BTC chart. Super oversold and we are almost not only at the levels of 2017 but at the levels of 2016. This should say that it is time to bounce. Yes, I was saying he would come back. I was early on my calls, but I took my positions in preparation.
I hodling. These are my reasons why. I do not think Ethereum is dead. It is the second and largest crypt most used out there.
Happy hodling,
Sherem
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Disclaimer: The opinions of our guest writers are exclusively their own and do not reflect the views of The Daily Hodl. These opinions expressed are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin or cryptocurrency. Please note that your transfers and operations are at your own risk and any losses you may incur are your responsibility.
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