Ethereum Support Sets Up For 12k (CRYPTO Profit Train Leaving the Station)

Posted 2 mins ago | by Catoshi Nakamoto

All aboard the ETH Express! Since the release of EIP 1559, Ethereum has been gaining some serious steam. With over 166 thousand ETH already burned, combined with a supply shock on exchanges, celebrity hype and over 1 billion dollars in NFT sales. Next stop: $4,000 dollars. Next stop after that: price discovery.

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Let’s get it.

Welcome to BitBoy Crypto. Home of the Bitsquad, the largest crypto community in all of the interwebs. My name is Ben. Every day on this channel I show YOU how to MAKE MONEY in Crypto. If you like money and crypto then make sure to hit that subscribe button. In this video we will discuss the overall trajectory of Ethereum in 2021, look back on how far we have come in 9 short months and where we are likely to end up by the close of 2021.

To give you an idea of where Ethereum will be in the future, lets look back to the early days…In August of 2015; ETH was trading around 66 cents. A one thousand dollar investment then would be worth well over 4 MILLION dollars today.

Given the prices now it might be hard to believe, but on January 1^st 2021, Ethereum was merely $730 dollars per coin. Facts like this keep me humble in the world of crypto. It’s important to stay grounded, especially when we have our laser eyes set on the moon. I implore newcomers in the space to realize that this is a fast paced environment, and things can seem unpredictable. This is why we encourage new traders to not over leverage and always remember to take profits on along the way.

Here’s a peek behind the conductors curtain so you can see how fast this train really moves. According to Martin Young from Cointelegraph: “In 2021, the total crypto market capitalization, which began at 769 million, peaked at 2.4 trillion in May; which was a net gain of 86%”. The first 5 months of 2021, the cryptoverse went on a complete tear, going down in history as one of the most parabolic runs to date. But lets focus specifically on Ethereum. From $730 on January 1^st, ETH passed its 2018 all time high of $1,405 on January 19^th 2021, just about doubling the price from the start of the year. Just over one month later, ETH hit $2,000 dollars for the very first time on February 20^th. Eight short days later, ETH crashed ALLL the way back down to around $1320 due to the selling pressure from long term HODLers getting to that psychological level of $2000 dollars for the first time since the coins inception. But only two weeks later, Ethereum passed the $2,500 dollar mark for the first time on April 15^th…and the ETHter bunny made its one and only appearance.

In the blink of an eye, it rallied to the $3,000 dollar mark on May 3^rd, 18 days later.

The $3,500 dollar mark was immediately surpassed only 48 hours afterwards on May 5^th. Exactly one week after that, Etherum hit it’s new all time high of $4,357 on may 12^th. And then, unfortunately, Cryptoface’s prophecy “sell in may walk away” came true. Thousands of traders were quickly liquidated and many new traders introduced to cypto this year, took their first trip down the “Boulevard of Broken Dreams”. ETH’s new higher low support level of around $1,775 held strong throughout the early stages of summer despite several other YouTubers claiming that the upward price action of early 2021 was “the final crypto pump”. The tides started changing when bullish divergence was confirmed on Market Cipher daily chart along with a bullish continuation signal on July 21^st.. According to Vildana Hajric from Bloomberg, “August marked Ethereums second consecutive monthly advance and it’s best monthly performance since April.

Ether has gained 350% this year versus Bitcoin’s 60% advance.” ETH has banked 36% returns in August alone. Remember that after clearing the $3,000 dollar level…NINE days later, Ethereum reached its all time high of $4,357. This time I have reason to believe that we wont be immediately crashing once we surpass the $4,300 level, in fact, just the opposite; price discovery. It could take longer than nine days to surpass the previous all time high, but at least now, we will have stronger support. According to Lark Davis on twitter, “11.7 million Ethereum were bought between $3,120 and $3,226. That should serve as a pretty epic zone of price support” There very well could be a slight pull back before reaching price discovery, considering that Piano Matty B reminded us “Remember Remember Bearish September” Will that be repeated this September? The sentiment seems to indicate otherwise. Factors that contribute to ETHs new higher lows include increased usage of decentralized finance, the rise of layer two solutions and the transition to proof-of -stake consensus. As we have mentioned on this channel before EIP (Ethereum Improvement Proposal) 1559, simply put, burns the gas fees for transactions rather than giving the gas to the minors. This decreases the selling pressure from the minors selling, as well as decreases the circulating supply. This, as well as a supply shock on exchanges, consequently causes the price to go up. You can follow the aforementioned ETH supply burn on Watchtheburn.com.

This website shows users how much ETH has burned, the value of the burned ETH, expected gas fees, rewards, price, tips, net issuance as well as net reduction. As of September 2^nd 2021, over 166 THOUSAND ETH has been burned (50k of that in the last 5 days) which is over $627 million dollars. I love watching my bags become more valuable. If you like watching the Ethereum supply deflate and your portfolio INFLATE. Smash that like and subscribe button.

Another contributing factor to ETH’s recent rally lies in the rise of layer 2 solutions. With the release of Arbitrum on Tuesday, Ethereum has nearly 1 billion dollars locked in Layer 2 solutions. Arbitrum has already locked down $120 million dollars in funding, which is over a 300% gain in the past 7 days. Another leading decentralized exchange that runs on audited smart contracts on Ethereum blockchain is dYdX, which has $288M dollars of value locked. dYdX has already surpassed Kraken in trading volumes. Lastly, ETH’s recent rally can also be attributed to the rise of NFTs, specifically the Crypto Punks NFT’s, which as of August 28^th, became the second NFT project in history to surpass over 1 billon dollars in total sales. There is a limited supply of 10,000 of these Ethereum based NFTs in existence. Created by Larva Labs in 2017, originally intended for a video game, the Brooklyn based developers Matt Hall and John Watkinson released them as NFT’s instead.

They kept 1000 for themselves and let the community claim the rest for free. The rise of their value is attributed to the fact that they are the one of the oldest collections of their time. According to data from CyptoSlam, late last month, the daily volume for the punk’s increased from $1.8 Million to $41.5 million within one week. On Monday, (August 30^th) they shocked everyone in the NFT space when they reached a record daily sales of $101 million dollars after Visa bought one of the punks and increased the projects total trading volume by 716%. That’s a lot of Lambos. All in all, as we enter the final months in 2021, it’s safe to say that Ethereum is less like a stuffy, urine filled, Amtrak train and more like the pristine Shinkansen bullet-train in Japan. There is still more to the story in 2021 and its safe to say we are very much still in a bull run. With the supply burning more and more every day, along with institutional money and retail investors still jumping on the train every time it stops, I still believe that Ethereum will land somewhere between 9 to 12 thousand dollars before the bulls drop off the cliff and the bear market officially starts. Hopefully everyone in the bitsquad remembers to take profits along the way before going off the rails on this crazy train.

That’s all I got. Be blessed. Bit Boy out.

Source: https://thebittimes.com/ethereum-support-sets-up-for-12k-crypto-profit-train-leaving-the-station-tbt2329.html?utm_source=blogger_source&utm_medium=blogger_medium&utm_campaign=blogger_cam

Category: Cryptocurrency News

Post by: TheBitTimes.com