Ethereum has drifted a little bit lower during the trading session only to turn around and recapture those losses. The market has been testing the 50 day EMA for a couple of weeks now, and if you squint you can even see a bit of an ascending triangle. Nonetheless, this is a market that looks as if it is ready to recover, and therefore if we can get above that 50 day EMA on a daily close, I anticipate that we will make a move towards the $4500 level.
Ethereum is expected to take off next year, especially as options markets have shown big bets for the month of March. In a sense, it is almost like everybody is just sitting around and waiting for it to take off so that they can get involved. For myself, I tend to hold Ethereum and do not worry about it too much, just simply looking at it as an investment and not a trade. That being said, Ethereum holds a special place in the sense that it is not money, but it is actually useful. The argument between bitcoin and Ethereum is a little bit bizarre to me, simply because Ethereum has a huge network of applications.
As the Ethereum 2.0 comes out this year, that should send the price rising as one of the main benefits will be lower gas fees, and quicker settlements. It is one of the biggest problems people have with Ethereum at the moment, and they are in fact addressing it. Because of this, 2022 should be a really good year for Ethereum, and I think between now and then we are to simply killing time. That makes quite a bit of sense, the liquidity would be an issue but quite frankly once Wall Street comes back from vacation, they will have to put risk on somewhere, and Ethereum is more than likely going to be one of the more popular bets. If we do pull back from here, I think there is plenty of support between here and $3600 to keep this market afloat, and therefore on a pullback would not be too concerned, and in fact I would probably buy a little bit more to add to the pile. I have been building up a position for quite some time, and expect to hang on for several months.
