Crypto Analysis | What's Up With Ethereum?

Good day Hiveians!

Join me in analyzing the crypto markets!

 

Ethereum has gone through a radical shift from POW to POS

There has also been the issue raised that the chain is becoming much more centralized since the biggest supply is on exchanges which have staking pools. These exchanges are also often subject to regulation which means that some transactions can be censored. Fees are still often in the $2-$10 range which means that the chain itself is still not very cheap. While I personally find these developments going in the wrong direction, the users will at the end decide if Ethereum will remain the #2 chain.

TA

First the raw chart since 2016:

We can spot a very strong repeating pattern in the chart when drawing in some basic trend lines:

We can draw triangles for the cycle tops in which the bear market is captured as well as the breakout to a new ATH. Price has now made a higher low (similarly to 2020) which could suggest that price is now moving upwards again in a new bull market. But is the ATL really in already?

If we draw some more trend lines they might suggest this to be the case:

These trend lines (for the newest cycle I drew in 2 as there is some ambiguity here) seem to point to the next market low. If so, then price could indeed have already reached the bottom with a low of $880. I would then expect two likely moves:

One tackling the resistance in spring of 2023 and overcoming it, or alternatively being rejected and retesting the support. It seems a bit early for price to move out of this triangle so I would think the second scenario to be more likely.

 

---

As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!

⛅🌦🌧🌦🌧🌨☁🌩🌦⛅🌧☁🌤🌥🌪🌧🌨🌩⛅🌦☁🌤🌥🌤⛅🌤⛅🌦⛅

Check out the Love The Clouds Community if you share the love for clouds!

⛅🌦🌧🌦🌧🌨☁🌩🌦⛅🌧☁🌤🌥🌪🌧🌨🌩⛅🌦☁🌤🌥🌤⛅🌤⛅🌦⛅