ETH-USD for the win (TA and Fundamentals)
Updated
Good day traders and investors!!! 👋👋😄🌞
I'm writing here, explaining the fundamentals on why Ethereum is becoming so popular amongst institutional investors, as well as what I believe the most probabilistic scenario is for Ethereum. 🤴
All cryptocurrency is important let's not get things twisted, I'm no ETH maximalist! However, the charts📈📉 certainly paint🎨 a specific picture. 🏜🏕🏝
📌🔎(For more info, take a look at my ETH-BTC weekly view idea linked to this post.) What we see is essentially a parabola. BTC is losing dominance to ETH over time. Why is this? 🤔⏬⏬
Well, Metcalfe's law gives us some good insight. Metcalfe's law states that the value of a telecommunications network (Facebook etc.,) is proportional to the square of the number of connected users of the system (n ). This law describes how a telecommunications network, again, (the internet or Facebook,) benefit from exponential network effects as the number of users (n) grows. Now, both Bitcoin, and Ethereum have been shown to follow this law, (think of all the hype BTC has gotten through social media and how that has made it grow at a rate faster than many had expected.)
Furthermore, picture three users: User A, B and C join Facebook. User A can now communicate with B and C. B can now communicate with A and C. C can now communicate with A and B. Hence N = (3) squared = 9, not three, as one might think. 💬🥱
Ethereum just surpassed the number of active wallet addresses in comparison to BTC. (This means more people are using ETH than BTC. They use ETH for Dapps, NFTs, etc..)
For those who may not know, 👇
The network effect could be described as a phenomena that occurs following how much value the general public considers one asset to have. The rate of change of this function or derivative has been in the favor of Ethereum for some time, with minor corrections of course.
Here's more! 😄
With our traditional finance system about to blow a gasket, 💥🚡😵 Defi is becoming a very viable option as a store of value. Dapp games⚽🕹🎮 and NFT's💎🃏🎴 have grown very popular with time🕖 as well, more-so during bullish market movements. Many see this as the formation of a digital economy (Basically when robots🤖are controlled by people🧒👧 from home, and less humans are needed to fulfill mediocre positions such as a store clerk.)
Even more bullish news🐮📣📰
Ethereum interest has spiked recently due to the incoming London Hard fork.(Keep in mind the names they choose for these transformation forks are usually random, almost like names for Hurricanes.) For those that don't know what a hard fork in cryptocurrency is I will also include definition here A hard fork (or hardfork), as it relates to blockchain technology, is a radical change to a network's protocol that makes previously invalid blocks and transactions valid, or vice-versa. A hard fork requires all nodes or users to upgrade to the latest version of the protocol software.
The London hard fork most notably includes Ethereum Improvement Protocol 1559. This protocol will essentially cut gas fees⛽🚓💲 in half,👌 while adding potential deflationary pressure to Ethereum by burning some ETH in every transaction.👍🆗
This protocol was well received from most as it basically takes from the miners, and gives to the users. Think of ETH EIP 1559 as a way for Vitalik Buterin 🧑, CEO of Ethereum to delay Eth 2.0, while not giving up too much of it's first mover advantage to competitors such as ADA, Dot, and Solana.
To add more fuel to the fire 🔥🔥 Ethereum has been adding substantial amounts of layer 2 scalability solutions on top of it's blockchain to reduce gas fees preceding Eth 2.0. Right now EIP 1559 is being added to three of 4 Ethereum test nets: ROPSTEN, KOVAN and RINKEBY. Last of which (Rinkeby,) will fire up around July 7th.
EIP 1559 is set to mainnet (go live) between the 15th and 25th of July. Whereas ETH 2.0 is set to mainnet early 2022. Although Ethereum has some formidable foes competing for the smart contract space, it will take them some time to catch up.
ETH is just that far ahead of the race right now. 🏁🐳
If Ethereum could take just one percent of the money invested in the traditional finance system(bonds, stocks, gold,) we would see an Ethereum price upwards $40,000 thousand USD.
The bet that many large institutions are taking, is that EIP 1559 and Eth 2.0 are successful, and that BTC won't make enough changes to contest it in time. Right now BTC dominance, although decreasing, still engulfs the market. That being said, I think the most likely probability given we have seen an end to the bearish correction in the market, is ETH flipping BTC for the first time temporarily. If this happens, it's highly likely next cycle it happens for a more sustained period, or even for good.
There you have it folks! These are some of the reasons why I hold ETH, BTC, and ADA in that order right now. Times are changing friends, Jack Dorsey doesn't like it either. ✌🆗
P.S. : Trade is invalid if we break below line to RED🟥 exclamation mark❗ on chart above👍📈
Thank you so much, and always remember💭✔
🛑🛑🛑🛑🛑This is not financial advice🛑🛑🛑🛑🛑 Above are approximate targets based on fibs and major trend-lines etc. I always recommend looking at multiple charts when making a big investment
Always have a stop loss ✋🛑💲 set
Any thoughts 💭💡, questions 🙋♀️🙋♂️❓, good 👍, bad👎, happy 😄 or sad 😥, in the comments always welcome.
Jazerbay 🐶
I'm writing here, explaining the fundamentals on why Ethereum is becoming so popular amongst institutional investors, as well as what I believe the most probabilistic scenario is for Ethereum. 🤴
All cryptocurrency is important let's not get things twisted, I'm no ETH maximalist! However, the charts📈📉 certainly paint🎨 a specific picture. 🏜🏕🏝
📌🔎(For more info, take a look at my ETH-BTC weekly view idea linked to this post.) What we see is essentially a parabola. BTC is losing dominance to ETH over time. Why is this? 🤔⏬⏬
Well, Metcalfe's law gives us some good insight. Metcalfe's law states that the value of a telecommunications network (Facebook etc.,) is proportional to the square of the number of connected users of the system (n ). This law describes how a telecommunications network, again, (the internet or Facebook,) benefit from exponential network effects as the number of users (n) grows. Now, both Bitcoin, and Ethereum have been shown to follow this law, (think of all the hype BTC has gotten through social media and how that has made it grow at a rate faster than many had expected.)
Furthermore, picture three users: User A, B and C join Facebook. User A can now communicate with B and C. B can now communicate with A and C. C can now communicate with A and B. Hence N = (3) squared = 9, not three, as one might think. 💬🥱
Ethereum just surpassed the number of active wallet addresses in comparison to BTC. (This means more people are using ETH than BTC. They use ETH for Dapps, NFTs, etc..)
For those who may not know, 👇
The network effect could be described as a phenomena that occurs following how much value the general public considers one asset to have. The rate of change of this function or derivative has been in the favor of Ethereum for some time, with minor corrections of course.
Here's more! 😄
With our traditional finance system about to blow a gasket, 💥🚡😵 Defi is becoming a very viable option as a store of value. Dapp games⚽🕹🎮 and NFT's💎🃏🎴 have grown very popular with time🕖 as well, more-so during bullish market movements. Many see this as the formation of a digital economy (Basically when robots🤖are controlled by people🧒👧 from home, and less humans are needed to fulfill mediocre positions such as a store clerk.)
Even more bullish news🐮📣📰
Ethereum interest has spiked recently due to the incoming London Hard fork.(Keep in mind the names they choose for these transformation forks are usually random, almost like names for Hurricanes.) For those that don't know what a hard fork in cryptocurrency is I will also include definition here A hard fork (or hardfork), as it relates to blockchain technology, is a radical change to a network's protocol that makes previously invalid blocks and transactions valid, or vice-versa. A hard fork requires all nodes or users to upgrade to the latest version of the protocol software.
The London hard fork most notably includes Ethereum Improvement Protocol 1559. This protocol will essentially cut gas fees⛽🚓💲 in half,👌 while adding potential deflationary pressure to Ethereum by burning some ETH in every transaction.👍🆗
This protocol was well received from most as it basically takes from the miners, and gives to the users. Think of ETH EIP 1559 as a way for Vitalik Buterin 🧑, CEO of Ethereum to delay Eth 2.0, while not giving up too much of it's first mover advantage to competitors such as ADA, Dot, and Solana.
To add more fuel to the fire 🔥🔥 Ethereum has been adding substantial amounts of layer 2 scalability solutions on top of it's blockchain to reduce gas fees preceding Eth 2.0. Right now EIP 1559 is being added to three of 4 Ethereum test nets: ROPSTEN, KOVAN and RINKEBY. Last of which (Rinkeby,) will fire up around July 7th.
EIP 1559 is set to mainnet (go live) between the 15th and 25th of July. Whereas ETH 2.0 is set to mainnet early 2022. Although Ethereum has some formidable foes competing for the smart contract space, it will take them some time to catch up.
ETH is just that far ahead of the race right now. 🏁🐳
If Ethereum could take just one percent of the money invested in the traditional finance system(bonds, stocks, gold,) we would see an Ethereum price upwards $40,000 thousand USD.
The bet that many large institutions are taking, is that EIP 1559 and Eth 2.0 are successful, and that BTC won't make enough changes to contest it in time. Right now BTC dominance, although decreasing, still engulfs the market. That being said, I think the most likely probability given we have seen an end to the bearish correction in the market, is ETH flipping BTC for the first time temporarily. If this happens, it's highly likely next cycle it happens for a more sustained period, or even for good.
There you have it folks! These are some of the reasons why I hold ETH, BTC, and ADA in that order right now. Times are changing friends, Jack Dorsey doesn't like it either. ✌🆗
P.S. : Trade is invalid if we break below line to RED🟥 exclamation mark❗ on chart above👍📈
Thank you so much, and always remember💭✔
🛑🛑🛑🛑🛑This is not financial advice🛑🛑🛑🛑🛑 Above are approximate targets based on fibs and major trend-lines etc. I always recommend looking at multiple charts when making a big investment
Always have a stop loss ✋🛑💲 set
Any thoughts 💭💡, questions 🙋♀️🙋♂️❓, good 👍, bad👎, happy 😄 or sad 😥, in the comments always welcome.
Jazerbay 🐶
Note
Hello and good day to everyone! ⭐'
EIP 1559 is now pushed back to August 4th (Reason for this update)
For now im looking to see if we can maintain above 2060-2000, if not I expect more down
Thank you so much!
Jazerbay 🐶
Trade active
We see a break in trend line that dates back to MAY 12th. Will have a low TF update once we near our next trend-line based resistance.
Fundamentals on ETH are still relatively strong at this point 🏁🆗
Thank you
Note
lower TF (2200 is next resistance)
I think this should not be a problem to break, what are your thoughts?
Let me know in the comments below 😄
Trade active
seems we are reaching for 4,300 target📌🎯. ETH is really performing well.For more info on ETH vs BTC, check out ETH-BTC chart from myself, Jazerbay
Thank you and happy trading all 🎉
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