Ethereum did very little on Monday as it looks like the $1250 level is going to continue to offer a little bit of the barrier. At this point, the market looks as if it is ready to roll over again, perhaps challenging the $1000 level. While the recent price action has been somewhat encouraging, the reality is that Ethereum has a long way to go before turning the attitude of the entire market around.
Quite frankly, if Bitcoin cannot pick itself off the floor, there’s no reason to think that Ethereum will. This is a “fade the rally” type of market until something drastically changes, not the least of which would be a final completion of the rollout of upgrades for the network. Beyond that, there have been a lot of security breaches on Ethereum-based ecosystems, although not necessarily Ethereum itself.
While I do think that Ethereum has some type of future, we are still trying to figure out what that future is. Yes, I am fully aware of the fact that we are heading into “crypto winter”, a time when you can accumulate vast amounts of crypto in an attempt to benefit quite nicely once things start to take off. This is my plan, but I’m only going to do it with coins that I believe are going to have a future. Luckily, Ethereum is most certainly one of those.
That being said, I do think that we have further to go to the downside, and even if we do start to turn things around from this day forward, we have a long way to go before any significant recovery would have occurred to make me think that I had “missed the trade.” I will think of this more or less as a savings account, perhaps adding a bit here and there, accumulating over the next several months or years as we try to carve out some type of basing pattern.
One thing that could help is if the Federal Reserve decides to loosen monetary policy again, which they almost certainly will do sometime late next year. This is because the economy is almost positively going into a recession, so eventually they will have to let go of the inflation argument, if for no other reason than to save their own portfolios.
