ETHUSD Capitulation to New Highs
This latest downturn may well be a precursor to ETH blasting through its previous high of $1,420. That is, of course, if news from the New York Attorney General (NYAG) about their investigation into the world’s largest stablecoin, Tether, doesn’t throw any surprises on January 15th. Tether, which has now issued nearly $24 billion USDT coins, is under fire for allegedly misusing funds to cover an $850 million loss at its sister company, Bitfinex. Unlike most other stablecoins, Tether has not been publicly audited and operates outside of the US, allowing them to scale to the size they have while competing coins like USDC have fallen behind with just $4 billion issued.
At this point, the existence of the assets backing Tether’s $24 billion USDT balance is firmly in doubt, despite claims from the company that each USDT is backed 1:1 by reserves. Regardless of whether Tether should be given the “benefit of the doubt” (as many people do), without any transparency on their accounts and with Tether firmly entrenched in Ethereum’s burgeoning DeFi ecosystem, the systemic risk is hard to ignore. Perhaps January 15th will give us a little more clarity on how this might end.
Honestly this may be the biggest shakeout (capitulation) before the biggest pump and surpassing the previous all time high. ETH bottomed out again along $975.99 and broke out of this downtrend, now just gained $1111 (which I was going to signal as a TP) slowly gaining long again towards:
TP1 🎯 $1144.47
TP2 🎯 $1166
TP3 🎯 $1221.94
TP4 🎯 $1284.99
If you are entering long I would suggest along the $1111 support level heading towards these TP levels.
At this point, the existence of the assets backing Tether’s $24 billion USDT balance is firmly in doubt, despite claims from the company that each USDT is backed 1:1 by reserves. Regardless of whether Tether should be given the “benefit of the doubt” (as many people do), without any transparency on their accounts and with Tether firmly entrenched in Ethereum’s burgeoning DeFi ecosystem, the systemic risk is hard to ignore. Perhaps January 15th will give us a little more clarity on how this might end.
Honestly this may be the biggest shakeout (capitulation) before the biggest pump and surpassing the previous all time high. ETH bottomed out again along $975.99 and broke out of this downtrend, now just gained $1111 (which I was going to signal as a TP) slowly gaining long again towards:
TP1 🎯 $1144.47
TP2 🎯 $1166
TP3 🎯 $1221.94
TP4 🎯 $1284.99
If you are entering long I would suggest along the $1111 support level heading towards these TP levels.
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