Where is the next stop for Ethereum? Is it actually undervalued?

in #ethereum7 years ago

$1000!? Wow! Or..is it really that much? Let's try and find out if we can argue for much higher prices.

 

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I know numbers, and especially high ones have some "magical" effect on us. One thousand! Wow! That's a high number. Three zeroes. One ETH is really really expensive..

But since you are a person who's been on the investing scene for more than a week, and your IQ is higher than that of a peanut, or the mainstream media for that matter, you understand that the price doesn't mean anything unless we look at other more important things.

Technical

First, we can look at the pure technical details. What would you like to compare Ethereum to? Dollar? Sure, Ethereum is over 1000$ USD. But first of all, USD has fallen relative to for example the norwegian krone and the Euro. Sure, it's still up, but does it make the most sense to look at it relative to Fiat-currency?

Or should we look at it compared to for instance Bitcoin?

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So if we look at the price in terms of Bitcoin, Ethereum peaked in mid-june at 0,15 Bitcoin per ETH. It's at 0,07 Bitcoin right now. The fair price for Ethereum right now would be more like $2250 than $1050.

If we look at Ethereums market dominance, it's at almost the lowest it has ever been. And also interestingly, it's dipping very low in it's usual step-pattern. As you can see, it moves up in steps, like a ladder.

As you can see, in January 2016 it spiked. Then it peaked in March. Then it slowly declined for about a year, just to repeat the same pattern again. And it's done that three times before that as well. It goes up, and comes back down.

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Even looking at the last month, I wouldn't exactly call it "price action"..

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Ethereum is actually veeery passive and undramatic.

Also, it passed $100 billion market cap for the first time, which probably and most likely was a resistance level.

 

Fundamentals

One reason is of course that there is a large number of ERC20 ICO's being launched on Ethereum this month. Another reason is that as Bitcoin cool down and Ripple is slowly dumped (I think it will be) mainstream will give Ethereum, or is giving Ethereum some attention again. It's been quite quiet around Ethereum in the mainstream. I've even seen some mainstream articles on Cardano and IOTA every now and then when they're not bashing Bitcoin. But Ethereum? Nah..not much.

Other than that I can't see any significant news right now, so I assume it's a long overdue technical driven correction upwards for Ethereum.

Next stop?

I think it's fair to say Ethereum is undervalued at this stage. I see The Merkle and also more mainstream media talk about it's "amazing gains" the past 24 hours. But we've argued why this gain was well overdue, and that it's still very undervalued. I have target of $2000 within 3-4 months on ETH.

 
 

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pretty interesting analysis particularly on the BTC/ETH price comparison. I quite sure we can find some arbitrage opportunities if you are trading using USD or Euros. Now, I feel that ETH is undervalued simply because of the number of ICO projects using ERC20. There aren't many projects that asked for BTC. Eventually, demand for other altcoins will drive up the demand for ETH, leading ETH to be priced "more" correctly.

This is amazing I've said will compete with bitcoin
At the end of 2018 it will generate more than $ 5,000 in my words

@scandinavianlife Market cap Increasing Day after Day 10000$ at the End Of the year :) You Will See ^^

The currency of eth is very much like btc. It is an open source platform, based on Blockchain technology, and eliminates the presence of a broker in financial transactions such as AKA, which is why these currencies can destabilize the financial markets. In turn, destabilize the world economy

i think it still undervalued, the etherium network and blockchain is robust and growing and more coins are been build on the etherium folk, their is more for ether and it will grow. this is where bitcoin was at a time like this last year so who knows where etherium will be by mid year or even end of the year

Invested in Ethereum while everyone was focusing on Bitcoin because i still believe it ETH will overtake BTC one day since there's a strong team behind it unlike Bitcoin.
People should start comparing coins to BTC than U$D that is slowly losing its value

The question is if Ethereum is undervalued now, what will happen with EOS when it is really launched ? I don't understand that a technology that collapses from kitties can be valued so high

Hehe. well, I guess markets are giving them some slack and waiting for them to fix those issues (speed, transfers etc) But sure..If they don't solve it and EOS becomes much better, EOS will win. Both can survive and compete also.. Who knows. Glad I own EOS :) I think EOS will be as high as ETH in 2018 btw. 10x with EOS from these levels. Possibly!

I would say it's definitely possible without a doubt that EOS will make these moves in 2018 - lets hope so :)

With kitties, fish, tanks and other blockchain game... ETH is undervalued;-)

I agree, I have been telling every one it could hit $2,500 in the next 2-3 months. I hold on to ADA & EOS, mostly ADA but you are absolutely correct, with the amount of companies that are ETH based launching left and right under smart contracts in coalescence to its already undervalued market position in comparison to big papa bitcoin, and not to mention the steady ascending general market cap of the whole crypto space reaching ONE TRILLION .. you can say things are going to pop off.. and i'm talking champagne bottles