Yesterday, ETH confidently broke through the resistance at $440 and quickly headed up. Its price reached $488, and is now consolidating at around $ 470.
After a two-week correction, we saw explosive growth, and there are serious fundamental prerequisites for this - the hype around DeFi. A similar situation with Ethereum was in 2017 during the ICO bubble. Its price rose almost non-stop. Both of these situations are very similar. In this regard, Ethereum has a good chance of showing new large-
scale growth.
If you look at the ETH chart in 2020, you can see 3 uptrends. The first was in January-February 2020, the second - from March to May, and the third began in mid-July which continues to this day. Moreover, the last uptrend is much stronger if you look at the structure of the candlesticks. Therefore, getting into a long-term short now can be extremely risky, we know that it is likely to stay with the trend.
In the coming days, we will likely see a short sideways trend and a slight correction in the region of $440 - $450. After that, the new target for the coin will be at the $500 level. If it breaks out, the price will go straight to the $600 mark. The endpoint should be at the $750 - $800 range. We expect these goals by the end of November.
Why don't we believe in $1,000 ETH now? All because of the notorious scalability of the network, which practically hasn't changed for the better since 2017. Commissions are already at $19, and this is incredibly huge for cryptocurrencies.
Also, in November, a transition to the PoS algorithm is expected, which could trigger a price drop. It should be understood that even a successful transition within the specified time frame will not allow an immediate increase in scalability and a large number of new problems may appear due to a large number of projects on the platform.
Another option is that the transition to PoS will not take place in November, which will also provoke a fall.
DeFi's explosive growth now takes little into account, concerning the current state of the Ethereum platform. Everyone is already beginning to hope that the transition to PoS will be a salvation for such projects. However, we have already been convinced that the general opinion can be deceiving. Let's see where the price will be for the winter.
After a two-week correction, we saw explosive growth, and there are serious fundamental prerequisites for this - the hype around DeFi. A similar situation with Ethereum was in 2017 during the ICO bubble. Its price rose almost non-stop. Both of these situations are very similar. In this regard, Ethereum has a good chance of showing new large-
scale growth.
If you look at the ETH chart in 2020, you can see 3 uptrends. The first was in January-February 2020, the second - from March to May, and the third began in mid-July which continues to this day. Moreover, the last uptrend is much stronger if you look at the structure of the candlesticks. Therefore, getting into a long-term short now can be extremely risky, we know that it is likely to stay with the trend.
In the coming days, we will likely see a short sideways trend and a slight correction in the region of $440 - $450. After that, the new target for the coin will be at the $500 level. If it breaks out, the price will go straight to the $600 mark. The endpoint should be at the $750 - $800 range. We expect these goals by the end of November.
Why don't we believe in $1,000 ETH now? All because of the notorious scalability of the network, which practically hasn't changed for the better since 2017. Commissions are already at $19, and this is incredibly huge for cryptocurrencies.
Also, in November, a transition to the PoS algorithm is expected, which could trigger a price drop. It should be understood that even a successful transition within the specified time frame will not allow an immediate increase in scalability and a large number of new problems may appear due to a large number of projects on the platform.
Another option is that the transition to PoS will not take place in November, which will also provoke a fall.
DeFi's explosive growth now takes little into account, concerning the current state of the Ethereum platform. Everyone is already beginning to hope that the transition to PoS will be a salvation for such projects. However, we have already been convinced that the general opinion can be deceiving. Let's see where the price will be for the winter.