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.
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