Although Bitcoin is still the most traded cryptocurrency, you can make awesome profits with other cryptos as well. Some move more than others, some more volatile, some less. Today I am having a look at what Ethereum has been up to this year and where it might be headed. If you’ve not traded this crypto before, that’s okay, I’ll try and give you an overview of the basics – like what the support & resistance levels are and what to look for. Ethereum too like many other cryptos is very volatile so profits can happen very quickly. And the trading of Ethereum is still in the beginning. Who knows we might see another Bitcoin price like wonder.
Ethereum, What’s it For?
I am particularly excited about this crypto. Why? Because Ethereum will bring us one of the greatest new inventions online – smart contracts. Just imagine saving all that time spent at the notaries’ and solicitors’ offices, not to mention the huge amount of cash. I bought a house not that long ago and I can vividly remember the pain of this process – 5 people had to take time and meet to sign papers at the notaries’. Of course the notaries too are people so there was a bit of a mix up and we had to meet again the next day. As it was a complex transaction, there had to be another meeting with the same participants two days later. The cost of all this came up to 1000€. Surely people’s time can be used for better things. The time is right to be able to do this in a single click.
Another Price Bubble?
Enough about my frustration with signing contracts. Let’s look at why Ethereum might possibly be the one to watch this year. I am definitely stocking up on coins. As trading Ethereum is only just hitting off we are seeing a rapid climb. The price back at the end of last year in December was just under $0.80. Ethereum hit an all time high on the 13th of March this year, reaching $15. That is an increase of over 1700%. Pretty crazy. The current price is around the $11 mark. Although it is hard to say if it will “do a Bitcoin”. I reckon that in the next few years Ethereum’s price could easily climb to hundreds of dollars. There are two different strategies I am currently implementing with Ethereum – buying and selling at recent levels of support & resistance for quick and easy profits and I am also keeping a bigger amount for the future.
Levels of Support & Resistance
Because trading Ethereum has started not that long ago there are not that many levels and they are not that well established, but they still work nevertheless. Let’s have a quick look at what they are.
Like many other cryptos the levels are nice and easy to predict – psychologically traders prefer round numbers. It makes sense too, it’s simpler to set your stop limits at $5 and $10 rather than $8.693. Looking at the previous visible levels we can clearly see price bouncing back at around $2, then again at $6, $9, $12 and the top currently at $15. The price has done a little comeback to the level of $9 and is gaining strength again.
If you are just starting out in the trading world I recommend learning the basics of support & resistance. It is not rocket science, but it works. Simply look at the history of the price and see at what levels the price has previously bounced back from and set your buy and sell orders.
The Future of the Price of Ethereum
Will there be another price craze like Bitcoin’s or will the price peak fast and return back like Litecoin? It is hard to say. I personally believe in the great future ahead of Ethereum. Whatever the future price might be, the technology that Ethereum gave us will change how we do things on the internet today. Support Ethereum and get your coins today!
Price analysis done mid March 2016