There is an erroneous similarity between the dot-com bubble and the current state of the cryptocurrency prices, notes billionaire Mark Cuban. Most will fail, leaving only a few to prosper. The tailwinds are blowing in favor of Bitcoin, Ethereum, and a few more.
Ethereum can survive the purge
However, a large portion of the 4,500+ crypto projects will fail. Mark has not shied away from showing his disapproval of Bitcoin and cryptocurrencies in general. At one point he said, I'd rather hold bananas and eat them when hungry than Bitcoin, which you said has no intrinsic value.
However, from his tweet, it appears that the billionaire is thawing and says that some of them, like Ethereum, actually have a chance.
A change from his previous stance, the billionaire's subtle support for the project is when a growing number, including millionaires and hedge funds, prefer to be open to the idea of cryptocurrencies as a layer of development that can drive forward. the next revolution.
Solutions for high fees as Ethereum is the home of DeFi
Ethereum enjoys the advantage of being the first to move, and many investors are focusing their eyes on the project.
The developers are at work, creating solutions to solve the outrageously high gas rates, and launching another consensus algorithm to replace the miners blamed for the unacceptably high rates; the network is also emerging as the home of DeFi.
There was over $ 20 billion in assets under management of different DeFi protocols at the time of writing. Given its outlook, ETH is rapidly shaking off its Jan 11 losses and holding steady above $ 1k.
Ethereum price prediction
He ETH / USD price down 5 percent in the last week.
Although traders are confident and expect even more profit, the path of least resistance in the immediate term is bearish. The bulls look exhausted and have not been able to shake off the January 11 losses. The result is a confirmation of losses and a flag for sellers to get rid of pullbacks.
However, the medium-term trajectory of the ETH price depends on the state of the price action at the close of this week. A bear bar will complete a double-bar bear pattern, a sign that the uptrend is over and sellers are looking for $ 600 or worse.
In the immediate term, each high within the Jan 11 trading range is an opportunity for sellers to strike with first targets at $ 900 and then $ 660. The $ 900 mark is around the middle BB, while $ 660 is around the December 2020 highs.
A slide to $ 600 will confirm a retest, and only then can the ETH / USD price recover.
Strong gains above $ 1,250, Jan 11 high, will override this projection.
Graphic courtesy of Trading View
Disclaimer: The opinions expressed are not investment advice. Do your research.
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