On May 21, 2017 we see ETH's largest daily upside wick combined with the largest trading volume since March of 2016. While ETH has enjoyed increasing adoption among institutions, investors and new applications, the ETH Market Cap has skyrocketed past these continuing positive developments creating an element of 'no end in sight' among short term traders.
ETH circulation currently stands at 91,841,563 ETH and enjoys a market cap of $15,801,891,910. The market cap has more than doubled within six weeks. This is unsustainable especially when one considers the rate of adoption.
This being said, ETH remains the 'GOTO' platform for development of many new ICOs and innovative uses of Blockchain technology and in no way should this recommendation be considered a long term negative view of the platform.
It is my view ETH will retrace from these levels to a relatively short period of consolidation, lasting approximately 6 to 12 weeks while investors and speculators take profit and seek alternative places to avoid holding 'stale' money.
Please do not consider this to be investment advice and use good practice by consulting an investment professional before taking risk.
Sources:https://www.ethereum.org/ether
coinmarketcap.com/currencies/ethereum/
ETH circulation currently stands at 91,841,563 ETH and enjoys a market cap of $15,801,891,910. The market cap has more than doubled within six weeks. This is unsustainable especially when one considers the rate of adoption.
This being said, ETH remains the 'GOTO' platform for development of many new ICOs and innovative uses of Blockchain technology and in no way should this recommendation be considered a long term negative view of the platform.
It is my view ETH will retrace from these levels to a relatively short period of consolidation, lasting approximately 6 to 12 weeks while investors and speculators take profit and seek alternative places to avoid holding 'stale' money.
Please do not consider this to be investment advice and use good practice by consulting an investment professional before taking risk.
Sources:https://www.ethereum.org/ether
coinmarketcap.com/currencies/ethereum/
On May 22 I published my recommendation to hold/sell ETH. My reasoning was adoption not keeping pace with the current market cap. At first I seemed exactly right as we got a healthy pullback into the first red block on the the chart. I expected the downward pressure to continue. Since then the price has increased dramatically. I believe this is due to my lack of understanding of how many ICOs were coming to market based on the ETH platform. I still maintain a hold/sell recommendation based on the high market capitalization as well as increased chatter of the SEC becoming more involved in regulation of the ICO market. It remains to be seen if this is the case. I am not a fan of increased regulation as I believe it will stifle innovation and especially since cryptocurrency is a worldwide security. However the amount of ETH is seemingly limitless and as the ICO market wanes in the future, especially if increased regulation is imposed I expect ETH to decrease dramatically in price.