Etherium is waking up!
Intro:
Etherium is nearing it's previous ATH's and it has gotten my interested in the technical aspects of ETH (in terms of price)
In this short post I'll do the following:
Disclaimer:
I am personally allocated into ETH and have been for a long time, so I am without a doubt biased in my opinions!
Forecast for ETH's price action:
ETH is now up over 200% since it switched to POS:
This changes ETH's tokenomics as well, coupled with the merge, which turned up the amount of ETH that gets burned and cut down on the amount of ETH that is minted, this creates deflationary tokenomics for ETH, which should reduce the supply.
That's one side, the supply, but we also need to look at the demand. If the demand increases as well, then we should see a more stable updraft in the price. I first want to show how ETH has performed relative to BTC since the merge and since it went to POS:
As you can see, it hasn't done so well, it has had more volatility and less positive returns, but I believe the ETF's on ETH will create a good long-term environment for ETH to increase in price, since a lot more passive long-term buyers will be entering the market.
Why is ETH better than other L1's
Well... I don't know if it's better, I have allocations in SOL as well, which have performed very well, luckily.
The reason I believe ETH is a good long-term bet, is because there are a lot of L2's that positively contributes to ETH's accesibility, scalability and functions. I don't see the same innovation at the same scale on top of other L1's. With L2's such as Base, which I'm sure will get a lot of people on-chain, I believe that it will increase the demand of ETH, by a lot. People will need to use ETH or a wrapped version of it to buy coins on the network, or to build on the network.
Gas prices are quite low on Base, but I believe that this will simply increase the usage of each user, which is good for the network.
I wish I could tell you if SOL or ETH is the better bet, but I don't have a magic ball that tells me the future, when I look at the SOL/ETH pair:
I see that SOLETH failed to break the previous ATH, which could indicate that it is showing weakness, which would mean ETH is about to outperform, maybe that couuld lead to a long-term bleed on SOLETH back to the 0.5 fib level.
In either case, I believe we will see ETH at $10,000 in at the 1.272 fib level
Small technical comment:
The white noise indicator is bullish on the weekly timeframe on ETH, it called the last bull-run, I'm hoping it's right again. No indicator works perfectly in issolation, but I am still giving it some weight in my decession to still hold ETH long-term
Indicator used is linked below, I made it free for everyone on TradingView
Comment your thoughts, do you agree or disagree? Do you have a coin you would like me to give my thoughts on?
Stay safe<3
Etherium is nearing it's previous ATH's and it has gotten my interested in the technical aspects of ETH (in terms of price)
In this short post I'll do the following:
- I'll try to go through what I think ETH's price will do in the mid-long-term
- Does ETH look like it will outperform other L1's?
Disclaimer:
I am personally allocated into ETH and have been for a long time, so I am without a doubt biased in my opinions!
Forecast for ETH's price action:
ETH is now up over 200% since it switched to POS:
This changes ETH's tokenomics as well, coupled with the merge, which turned up the amount of ETH that gets burned and cut down on the amount of ETH that is minted, this creates deflationary tokenomics for ETH, which should reduce the supply.
That's one side, the supply, but we also need to look at the demand. If the demand increases as well, then we should see a more stable updraft in the price. I first want to show how ETH has performed relative to BTC since the merge and since it went to POS:
As you can see, it hasn't done so well, it has had more volatility and less positive returns, but I believe the ETF's on ETH will create a good long-term environment for ETH to increase in price, since a lot more passive long-term buyers will be entering the market.
Why is ETH better than other L1's
Well... I don't know if it's better, I have allocations in SOL as well, which have performed very well, luckily.
The reason I believe ETH is a good long-term bet, is because there are a lot of L2's that positively contributes to ETH's accesibility, scalability and functions. I don't see the same innovation at the same scale on top of other L1's. With L2's such as Base, which I'm sure will get a lot of people on-chain, I believe that it will increase the demand of ETH, by a lot. People will need to use ETH or a wrapped version of it to buy coins on the network, or to build on the network.
Gas prices are quite low on Base, but I believe that this will simply increase the usage of each user, which is good for the network.
I wish I could tell you if SOL or ETH is the better bet, but I don't have a magic ball that tells me the future, when I look at the SOL/ETH pair:
I see that SOLETH failed to break the previous ATH, which could indicate that it is showing weakness, which would mean ETH is about to outperform, maybe that couuld lead to a long-term bleed on SOLETH back to the 0.5 fib level.
In either case, I believe we will see ETH at $10,000 in at the 1.272 fib level
Small technical comment:
The white noise indicator is bullish on the weekly timeframe on ETH, it called the last bull-run, I'm hoping it's right again. No indicator works perfectly in issolation, but I am still giving it some weight in my decession to still hold ETH long-term
Indicator used is linked below, I made it free for everyone on TradingView
Comment your thoughts, do you agree or disagree? Do you have a coin you would like me to give my thoughts on?
Stay safe<3
Join my community where i share signals and my secret algos:
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Telegram:
t.me/ikkeomarfree
I can also pass funded accounts for you!
$50,000 accounts
Just dm my Telegram @IkkeOmar
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