Ethereum has reach new recent highs breaking the previous resistance level of $14. There are exciting times ahead for Ethereum. Why the sudden jump? Because the new game changer has gone live. I am talking about The DAO. It could be a bit difficult to understand if you’re not a crypto expert but let me try and put it into a few words.
“The DAO is a decentralized autonomous organization established April 2016 that invests in other businesses. It is a digital organization with no conventional management structure or board of directors. “
The DAO is actually quite a good and simple concept if you look past the techy buzzwords and marketing talk. The core of The DAO is essentially a blockchain-based system which allows people to come together, vote, make proposals etc. Basically kind of like a decentralized crowdfunding platform. It is promised to be able to run businesses autonomously and even make money. Cool stuff. Don’t worry, there will be an article explaining all this a bit more.
So – this is what has made Ethereum move in the last few months. A total of 12 million ETH have been invested into The DAO. As more and more individuals and businesses come across this new awesome concept, there are huge possibilities and reasons for people to start investing into Ethereum. This will then push the price up even more.
As already mentioned above the price has crossed a significant level of resistance at $14. It keeps hovering just over the $14 mark and a short term bearish pullback is expected. In the long terms the bulls are still strong with ETH and a continuation of the uptrend is to be expected. There is of course a possible different scenario – there seems to be a double top pattern bouncing back from the level of $14.75 which could mean that the price has peaked for the near future.
I personally don’t believe this to be the case as after the level of $14 has been broken there’s confidence into the price going higher and a new wave of enthusiastic traders will be getting their share of this action.
To support my claims of a continuing uptrend is also a positive sign from RSI which is currently around 50, signalling us that new highs are still ahead. On top of this the price is also still way above the 100 Simple Moving Average.
Ethereum is a perfect new investment opportunity. I’ve been banging on about smart contracts and the coin itself for a while now. It has already made a significant climb from just a few cents to nearly $15 and looking at where The DAO is going, I don’t think we’ll see it slowing down anytime soon. There could be a bubble similar to Bitcoin’s starting years. I do not think it would reach quite as high as the remarkable BTC did but, it is a possibility. I am eagerly mining my coins and it also gives awesome opportunities for day trading.
Even though I try to give you the best advice possible, please understand that the markets can be unpredictable and trading is risky. It might result in the loss of some or all your investment. Never trade with capital you can’t afford to lose.
Article written 8.06.16