Ethereum $480 level
Updated
As you can see on the chart, Ethereum has a confluence of support forming at the $480 level. Price tends to get drawn to these areas where we see an intersection of multiple trend lines so I anticipate a test of this area.
Note
Keep an eye on the $545 level. That should provoke a bounce.Note
If we zoom into a smaller timeframe we can see that the trendlines are currently placed at $480 and $465. The $465 is the stronger support of the two. Hope this has been a profitable trade for some of you. Note
And please give me a like...it is frustrating to see top authors consistently fail but get tons of likes!Note
Until we get a close above these trend lines, we can assume that ethereum's fall will continue.Note
Strong rejection at prior support. This market has been pumped and we will soon see a dump.Note
Just a head up to not get carried away by FOMO here. Lots of overhead resistance coupled with way overbought conditions on the 4 hour means we need a cool down. It could be sideways movement or it could dump. Also of note is that many people attribute pump to news that BlackRock, world's largest hedge fund, had plans to enter into cryptocurrency. Larry Fink, BlackRock's CEO, clarified to Bloomberg this afternoon that BlackRock has no intentions of getting into crypto. It is exploring blockchain tech but not interested in the coins. Buyer beware.
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Close up of same chart I posted before pump. We are now on pretty strong support and it may bounce off here. Things don't look good if it doesn't.Note
We broke the line at $480 that I had mentioned earlier. It is now acting as resistance and we are testing it at the moment. The blue line down below could be a good buy and is one to watch. Note
The wall of doom at the 480ish level was just too much for ethereum. I have been thinking about the valuation of ethereum and realized the following:Ethereum has about 10,000 people using its decentralized apps per day. At a 40 billion market cap that means we are valuing each daily user at 4 million dollars. By comparison, Facebook has a 500 billion market cap and has over 1 billion individual users per day. So, we are valuing facebook users at $500.
If we put a $500 valuation on each ethereum user, I am not saying we should, ethereum's market cap would be 5 miilion and each coin would be worth 5 cents. This is just a fundamental analysis to try to help keep things in perspective for everyone.
In any event, we can trade this coin up and down and should at least see a bounce pretty shortly.
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