ETHEREUM along with BITCOIN have both produced huge gains this year with ETH up 93.66% and BTC at 166.35%.
For me ETH is at a crossroads and the positives and negatives in my opinion are as follows:
POSITIVES:
- The market looks strong, consolidation periods are not long in duration, and price has just broken out of a long term range. It looks like crypto interest has returned and with ETF decisions in sight it looks like the sentiment is LONG into this news event.
- Fundamentally ETH is in a strong place right now, it recently gained 'deflationary' status too which helps the supply/demand dynamic for the bulls.
- ETH tends to follow suit after BTC, so when BTC goes up the profits rotate into ETH when BTC is consolidating and then it catches up. Since BTC is so far ahead in terms of %gain this year I do believe ETH is due it's major rally however I don't think it will come soon, I can see BTC continuing to dominate it for some time until the BTC ETF narrative has passed and the final blow off top at the end of the Bullrun which is some time away, 2 years or so...
NEGATIVES:
- It looks like we're at resistance on the volume profile after a huge rally with very few pullbacks.
- Reliant on BTC to maintain the move forward. If BTC falls off a cliff it will bring ETH down with it.
- Major bearish divergence on the 1D timeframe.
- Approaching overbought on the weekly time frame.
- Euphoric sentiment, both on CT but also in your own feelings. If you've been into crypto for a number of years you would know getting euphoric often leads to returning any gains that were made.
- New yearly high for the fear and greed index @ 75.
To conclude, I am still macro bullish on ETHEREUM. Over the long run (next 2 years) I have no doubt ETHEREUM will see new highs.
However, I do want to be wary of a pullback , not just for ETH but also BTC as altcoins are subject to any changes in BTC which has gone parabolic in recent days. This coupled with the bearish divergence means from a Technical analysis standpoint maybe this is a good time to take profits. From a fundamental analysis standpoint the market is strong and everyone is euphoric. What happens next will be decided by people being bullish team FA or if people are team bearish on TA.
For me ETH is at a crossroads and the positives and negatives in my opinion are as follows:
POSITIVES:
- The market looks strong, consolidation periods are not long in duration, and price has just broken out of a long term range. It looks like crypto interest has returned and with ETF decisions in sight it looks like the sentiment is LONG into this news event.
- Fundamentally ETH is in a strong place right now, it recently gained 'deflationary' status too which helps the supply/demand dynamic for the bulls.
- ETH tends to follow suit after BTC, so when BTC goes up the profits rotate into ETH when BTC is consolidating and then it catches up. Since BTC is so far ahead in terms of %gain this year I do believe ETH is due it's major rally however I don't think it will come soon, I can see BTC continuing to dominate it for some time until the BTC ETF narrative has passed and the final blow off top at the end of the Bullrun which is some time away, 2 years or so...
NEGATIVES:
- It looks like we're at resistance on the volume profile after a huge rally with very few pullbacks.
- Reliant on BTC to maintain the move forward. If BTC falls off a cliff it will bring ETH down with it.
- Major bearish divergence on the 1D timeframe.
- Approaching overbought on the weekly time frame.
- Euphoric sentiment, both on CT but also in your own feelings. If you've been into crypto for a number of years you would know getting euphoric often leads to returning any gains that were made.
- New yearly high for the fear and greed index @ 75.
To conclude, I am still macro bullish on ETHEREUM. Over the long run (next 2 years) I have no doubt ETHEREUM will see new highs.
However, I do want to be wary of a pullback , not just for ETH but also BTC as altcoins are subject to any changes in BTC which has gone parabolic in recent days. This coupled with the bearish divergence means from a Technical analysis standpoint maybe this is a good time to take profits. From a fundamental analysis standpoint the market is strong and everyone is euphoric. What happens next will be decided by people being bullish team FA or if people are team bearish on TA.
Comment:
After the HTF bearish divergence, price has now retested previous local high S/R and a good reaction off that level. ETH is still yet to have strong gains against BTC and the rest of the market. Staying patient for now.