ETHUSD (Ethereum) – Week 8 – Stratospheric levels

Ethereum hit the $2000 USD milestone today as more institutional buyers have boosted their positions in the last weeks. The market capitalization of the cryptocurrency is $233 billions and is up 172% YTD. The odd news this week was that Nvidia, the American technology company producing graphical processing units and SoCs, will artificially reduce the performance of its Geforce RTX 3060 graphics card when it comes to Ethereum mining. Matt Wuebbling, the head of global marketing pointed out that “We designed GeForce GPUs for gamers, and gamers are clamoring for more,” as there is a global semiconductor shortage going on.

Technically, because we are at all times high, we feel that a bigger correction (at least to the bottom line of the channel) is imminent. However, that doesn’t mean the uptrend can’t continue higher. We see a sharp correction or a corrective structure here and then a continuation of the uptrend with a higher probability than a total reversal. We advise caution.

Trade with care.

Best regards,
Financial Flagship

Disclaimer: The analysis provided is purely informative and it should not be used as financial advice. Remember that you need a plan before you start trading; so, take this knowledge and use it as a guidebook that will ultimately help you understand the market and easily predict your next move.