EthereumUpdated Another parabolic run from here, or do we fall back to 2200-2400
One thing I've learned over this last year is that as soon as everyone is believing we are going to continue higher, we pull back. And vice versa.
Were the calls for a Bitcoin 'flippening' an indication of over-exuberance and obvious signs of a local top (which so far has been the case)?
From here this could play out two ways IMHO. If the financial market can hang in there and everybody acts like life is perfect, we will have another Ethereum run to the next level higher well past 4k. However if the financial market suffers a setback, taking crypto with it, then Ethereum is re-testing the 2200 range and a much longer period of recovery.
If we do have a strong pullback, Ethereum will have a much harder time dominating in areas that have driven its price so strongly. Not to say that a 9k Ethereum won't happen, just that the time when that occurs may be much later due to increasing competition and coinciding with Eth 2 unlocking.
So in my view over the next few weeks, we either see the beginning of a parabolic lift off or the obvious signs we are going to re-test a lower area of support in the 2200-2400 area. That's my completely unfounded sense.
Were the calls for a Bitcoin 'flippening' an indication of over-exuberance and obvious signs of a local top (which so far has been the case)?
From here this could play out two ways IMHO. If the financial market can hang in there and everybody acts like life is perfect, we will have another Ethereum run to the next level higher well past 4k. However if the financial market suffers a setback, taking crypto with it, then Ethereum is re-testing the 2200 range and a much longer period of recovery.
If we do have a strong pullback, Ethereum will have a much harder time dominating in areas that have driven its price so strongly. Not to say that a 9k Ethereum won't happen, just that the time when that occurs may be much later due to increasing competition and coinciding with Eth 2 unlocking.
So in my view over the next few weeks, we either see the beginning of a parabolic lift off or the obvious signs we are going to re-test a lower area of support in the 2200-2400 area. That's my completely unfounded sense.
Note
Where the parabolic run could end.Note
Or else we re-test and then push back up into resistance just under the trendline.Note
The other angle on this is the Grayscale Ethereum trust price activity (which I invest in). It would seem logical (of course logic in this use case is a big assumption) to see a pullback and then continuation up past the beginning of the year. This would support the pullback now, then push higher scenario. Note
All this is to say, we should all be very cautious right now - but also keenly aware that a parabolic move could happen at any moment.Note
All of this - NOT FINANCIAL ADVISE! :-)
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.