top of page
  • Writer's pictureT. Livingston

Ether Sets Up With Enormous Potential As Supply Is Reduced

Ether continues to be the apple of my eye and a major focus of my trading as its' chart continues to set up for a potentially large move. Since bottoming in June of 2022, ETH has been building a very large base and has been showing subtle signs of strength. Recently, we have been seeing Ether build the right side of a cup and handle style base. When looking at a weekly chart, we can see that there has not been much distribution in 2023 and the tight action over the last few months is constructive.

From a supply-demand perspective, the move from proof of work to proof of stake, was not only environmentally friendly, it also reduced the number of coins in circulation. Just like anything else, a reduction of supply often leads to an increase in prices as long as demand is consistent or continues to rise. Demand for Ether looks to be there, as evident by the accumulation bars on the weekly chart. I will be looking to add to my position should the $2,000 and $2,150 resistance areas be breached. As with any other trade, I also have a plan to manage my risk should the trade run against me.


Risk right. Sit tight.







Full Disclosure: I currently own Bitcoin and Ethereum.


Disclaimer: This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained in this post constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned in this blog or the associated Twitter and Instagram feeds. The stock or stocks presented are not to be considered a recommendation to buy any stock or stocks. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.

Comments


Commenting has been turned off.
bottom of page