With ETH hitting $1635 as of me writing, you may have some questions. How did we get here? Could we have predicted this? Is dad ever coming back from Walmart? Where do we go from here?I can answer three out of four:How did we get here?We pretty much had a perfect storm of conditions all aligning at once:-Grayscale announced the reopening of it's ETH trust. This is one of the biggest factors, as it causes a massive influx of institutional investors.-VISA announced additional partnerships and adoption of cryptocurrencies.-Introduction of ETH futures trading.-Volatility in traditional markets due to the short squeeze of GME, among other market factors.-Introduction of new investors to the crypto space due to the dogecoin pump and dump.All of these things together caused a skyrocket in demand from day traders, retail investors, your boomer parents, and institutional investors all at once.Could we have predicted this?Absolutely. Take a took at this 1 month chart and see if you can identify any patterns:oh yeah you like that don't youThat's right baby, we're in the classic "Vitalik's Dong" formation.From the moment the rally breaks $1k at the taint, you can see a clear pattern form. The price hits alternating higher highs and higher lows, forming the ceiling and base of the shaft, respectively. It starts to condense as we reach the tip and then splooges out into our current rally. Our current price point leaves us at an interesting spot: we're just lightly stroking the top of the shaft. If we can break through, we can expect to see a higher climax to our current rally. If we just edge that top, we may continue back down to the base and see a retraction to $1350. I think our most likely scenario, however, is that we continue somewhere in the middle: along the "golden stream."Is daddy coming home?You're going to have to be a financially independent big boy now, that's what ETH is for.Hope this helped, taking questions in the comments.
Submitted February 04, 2021 at 01:27AM
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