The Ethereum market rallied on Friday to reach the 50-day EMA, a technical indicator that a lot of people will be paying close attention to. Because of this, I think it is probably only a matter of time before we have to test the $2000 level, which is a large, round, psychologically significant figure. The $3000 level is an area that will attract a lot of headline attention, as well as psychological tension. Whether or not we can break above there is a completely different question, but we have negated a descending triangle. This is without a doubt a very good first step for Ethereum.
The size of the candlestick is relatively impressive, considering that it is against the overall trend. The fact that we are closing at the very top of the candlestick also looks good, and I think it is probably a situation where Ethereum is starting to get a little bit of a boost due to some testing that has gone on for the so-called “Ethereum 2.0” work. As that moves forward, that does help with the idea of the coin going higher. That being said, people have to start wondering whether or not the blockchain is ever going to truly take off. Yes, there are a lot of great use cases, but it is not quite the technological boom that we had been promised so far. Let us put it this way: “When is the last time you used blockchain?”
Nonetheless, there will be some uses that survive and I do believe that the Ethereum ecosystem is probably one of the most likely beneficiaries. What blockchain needs is some type of break-out application that people choose to use. It is interesting how this has played out because the initial reasoning behind the blockchain coins was going to be anonymity, but all they do is leave a trail of where you have been sending coins.
I am not saying that it will not eventually be something, but at this point, it is not overly impressive. The market is one that people trade, not necessarily invest in for the most part. I do believe that we will ultimately have to find some type of use case scenario, but right now we just do not have one. Until that is the case, I will continue to buy on dips with decent setups, but I am not married to any crypto position.
