Welcome back,
Few days back I shared Ethereum market analysis via my technical and fundamental analysis and if you went through that blog you might be aware of the levels you are trading at right now. If you want, you can go on my blog and read that blog and it will help you understand the current market situation. In today's blog I'm going to talk about what can we expect in the coming weeks from the market based on the factors I have seen in the market happening right now.
Ethereum recently broke its one of the most important resistances at 4100 USD, and after that we saw its climbing till 4700-4800 USD, after which it failed to break the last final resistance and we saw a rejection. Currently Ethereum is trading at 4400 USD at the time of writing this blog. Now why were we able to break the 4100 USD resistance after attempting to break it 4 times in the past where we failed?
The answer to this question is also the answer to whether the market is going to go up in coming weeks or we are going to see a downfall further in the market.
So what is the answer to that question we just shared? The answer is quite simple. Institutions have entered Ethereum and that is why Ethereum is performing quite strongly. In fact, if you look at the past 5 days, the ETF inflows in Ethereum is much more than Bitcoin ETFs. While Ethereum ETFs were able to bring 3.37 billion dollars, Bitcoin fell behind at 966 million dollars. It is a big gap around 4x more. Coming into Ethereum is not something we should ignore and it clearly indicates how the market might shape in coming weeks.
So while the truth is that Ethereum is 13% down on weekly time and 2-3% down on the daily time frame, I still think Ethereum is going to create a new all-time very soon. In fact, I think it can even break 5-6K dollars in next few weeks itself. And then the people will finally accept about the fact Ethereum having the most hated run.
Next month we are going to have the FOMC meeting on 15th of September and September is the month which is historically being a bad month for crypto. We often see correction in the month of September and the Fubar and then a pump in November and December is seen. So maybe September will bring some correction to the market but again while earlier we have seen corrections in that month, now strong institutional demand is going to help us stay strong even in September. Maybe the selling pressure will be absorbed by the institutions itself.
So for now, I am going to hold on to my spot bag and won’t rush into anything. I will think of booking some profit only if I get around 2-3x on my holdings. Till then, my plan is just to sit back, watch the market closely, and wait for it to perform in the coming months.
Rest I hope my blog is not be going to seen as a financial advise. I just shared what the market structure shows us. The Ethereum ETF inflows are something anyone can see on the internet. Black Rock is leading when it comes to injecting the liquidity there. I think they bought alone 500+ million dollars in just single day recently which is more than half of BTC total inflow in five consecutive days.
These are the reasons why I think that there can be a massive run in Ethereum very soon but we have to make sure that we don't end up going in FOMO as buying at this point of time is highly risky. The best I am going to do is hold my spot tokens and stay away from futures. By the way I am not one of those who are in to future trading but still if you are someone who is in to them then it is better to stay away from them.
The final flush out is happening and if you see a massive dip just make sure to enter it as the final opportunity.
Thank You and happy trading everyone.
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[@PowerPaul:]
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