Ethereum Looks Poised For Another Strong Uptrend
Ethereum continues to shape up well and looks poised for another strong uptrend. There are a few things that intrigue me about Ethereum as we approach the fall of 2021. First, as the push for DeFi, or decentralized finance, continues, I believe Ethereum will play a dominant role in the coming months and years. This is because as blockchain is used to offer traditional financial services much of this traffic is likely to go through the Ethereum network. While Bitcoin is currently the largest cryptocurrency by market cap, it just does not have the capability to do what Ethereum can do. Although it is the world's second largest cryptocurrency, Ethereum is actually the most widely-used blockchain. It is important to note the difference between Bitcoin and Ethereum. Bitcoin’s main purpose is to be a digital currency-a form of payment or a store of value, sort of like a "digital gold." Ethereum, on the other hand, offers an open-source operating system which allows for the creation of dApps (decentralized apps). Whereas Bitcoin decentralized money, Ethereum opens the possibility to decentralize many other things.
From a technical perspective, Ethereum has been performing really well over the past month. I’ve already purchased Ethereum multiple times this year, but will undoubtedly add to it should another entry point present itself. There are few things I really like about Ethereum’s action this summer. First, the consistent support above the $1,750 level is a sign of strong support. In addition, the fact that the 40-week moving average was not lost during the recent correction demonstrates accumulation. I also like the fact that the 10-week moving average has started to turn up as Ether's chart forms an elegant cup and handle pattern. I will be monitoring Ethereum closely in the coming weeks to see if I can add to my position off the 50-day moving average or through a heavy volume breakout above recent resistance.
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Full Disclosure: I currently own Ethereum and Bitcoin.
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