Ethereum (ETH) has had quite a run over the year-to-date. In January, the cryptocurrency was well under $100B in total market cap. As the new year and COVID developed, a lot of central banks continued pumping stimulus into the economy through maintaining lower rates and quantitative easing. As investors sought inflation-resistant asset classes, cryptocurrencies were a fan-favorite. With the help of social media influencers, many cryptocurrencies began to rise astronomically. It was not unusual to see these currencies rising in excess of +20% in a single day, like Elon Musk and Dogecoin. Sometimes they would rise +100% in a day. While most of these were obviously bubbles in pump and dump schemes, Bitcoin and ETH remained renowned for their utility and name recognition. This ideology remains today, Bitcoin and ETH are the gold standards of cryptocurrencies (no pun intended). This wild bull run leads the price of ETH to quintuple (5x) to over $4400 per coin. Ever since the price has been dwindling down to where it is now near $200B market cap or ~$1750 per coin. This level has created support multiple times signifying that it is a significant factor in technical analysis models. Whether you know/believe in technical analysis it is still a massive driver of automated trading machines formulas. I believe it is second only to politics/legislation. It is still a relatively new asset class so there are large risks (market, political, etc) associated with cryptocurrencies.
That being said, as of 6/27/2021, it is on the verge of a massive breakout, maybe to the upside, maybe to the downside. If it breaks below the $1700, it will likely trade down 10-15%. If it breaks above $2000 it could reverse its long-going downward trend.
Full Disclosure:
I have owned a long-term crypto portfolio since 2018.
I currently have some equity at around $2000. I am looking to buy more around the $-1770-1780. I will get out of the trade if it breaks below $1690.
I believe the technology will eventually be adopted universally so it makes a good portion of my total portfolio.
That being said, as of 6/27/2021, it is on the verge of a massive breakout, maybe to the upside, maybe to the downside. If it breaks below the $1700, it will likely trade down 10-15%. If it breaks above $2000 it could reverse its long-going downward trend.
Full Disclosure:
I have owned a long-term crypto portfolio since 2018.
I currently have some equity at around $2000. I am looking to buy more around the $-1770-1780. I will get out of the trade if it breaks below $1690.
I believe the technology will eventually be adopted universally so it makes a good portion of my total portfolio.