Welcome back,
What a wonderful way to start the weekend. It is already Saturday and I saw two good things. The first, I hope you all know that Leo is climbing higher. We are at 14 cents right now and I know we are soon going to surpass the values in terms of Hive.
The second interesting thing was the price of Ethereum which is now testing one of the most important resistances in the last few years. Let us understand whether Ethereum is going to break this resistance this time or we are going to see a liquidity squeeze in the market in the coming hours.
In the chart below, you can see the two horizontal lines which are the resistance and support being tested by Ethereum over the period of the last four years. The two small lines that you see, which are being pointed at by the red arrows, are what we are going to talk about.
In the screenshot below, you can see that this is the fourth time we have broken the resistance and now we are testing the final resistance for Ethereum which will be the deciding factor on whether it will go higher or whether we are going to see a liquidity squeeze. Right now, the price is trading at $4,077 and in order to make a new high we have to sustain this level and consolidate here for a decent time so that the market stays bullish for Ethereum.
It is really important to understand why holding this level matters because the last three times we were rejected from this level there was a massive crash in the market for Ethereum. That is why I hope we sustain this level, show some strength on the buy side liquidity, and maybe then people will start putting their money into Ethereum. I know it is hard to understand why people will invest in Ethereum when it is trading above four thousand dollars when they had the opportunity to buy it at fourteen hundred, two thousand, or even less than three thousand dollars.
The answer to that is quite simple. I have said it a number of times that Ethereum is going to have the most hated run and when it pumps it will outperform the entire market. People will look at it and regret that they missed it. Now imagine someone who bought it at $1,400, they are already in 3x profit, that is a 200% gain.
And most importantly, people have forgotten that the all time high for Ethereum was at $48,062 which is yet to be broken and when it is broken we are going to see higher levels for Ethereum. We all know that the last all time high for Bitcoin was $69,000 and we are almost trading at 80-90% higher value for BTC compared to the last all time high while Ethereum has still not broken the recent all time high and that is why when it breaks its last all time high it will be climbing higher and even if it is able to climb 80-90% from that value you can calculate and see where Ethereum will reach.
I think Ethereum should see a new all time high around $8,000.
And I am not saying this just like that. I am saying this by comparing it to Bitcoin and if Bitcoin can run 80-90% then surely Ethereum can give an 80-90% run compared to its last all time high.
Oh my god, while I was writing this blog I just saw that Ethereum has given a god candle and now we are trading at $4,172. I do not know what is about to happen, but you can see in the screenshot below that we have broken that resistance and now we are trading above it. But still do not get excited because it is very important to hold that resistance now which is acting as support for Ethereum.
In the next few hours we are going to see how Ethereum will perform on the hourly basis so stay tuned. I am going to update you all through the threads and for this blog I think we can end it right now and I am going to go see my Ethereum holding and celebrate.
Thank you and happy trading everyone and please stay away from futures right now. Don't get excited and open a long position in Ethereum yet.
