• TheCryptoCactus

Why Ethereum is heading for $3000

Updated: Nov 8

Dear Traders,


First of all, let me just say happy Saturday to everyone who is currently trading the market! I hope everyone has an amazing weekend and in this newsletter/article I just wanted to discuss in detail a little bit more about why I am currently so bullish on Ethereum moving forward, as I seem to get a lot of messages and comments about my personal opinion on HTF price action and also just general fundamentals.


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So firstly, when I think of Ethereum the first thing that comes to my head is the development ecosystem of blockchain. Currently apart from some smaller blockchains such as DOT and ATOM, currently my thoughts are that all the old chains from 2017/2018 are pretty redundant at this point, and any future growth is already limited just due to the number of community members and bag holder who are underwater.


In 2019, we saw insane amounts of growth with the DeFi ecosystem, and while we saw it was pretty insane the amount of adoption and services that where both being launched and being adopted, we were still unaware of just how much DeFi would have on the impact on the blockchain space during and throughout 2019/2020. DeFi is now one of the most used and adopted areas of blockchain and its impact on the entire space is insane, the amount of capital being locked into protocols for lending and finance purposes is very impressive and shows the power of blockchain.

While one of the major downsides right now in my opinion is the gas fees and network scalability, this should soon be solved with ETH 2.0, and if you think that Ethereum developers are not working on this issue then you are crazy. You will be shocked over the coming few weeks when you see what gets announced. Also in addition to this, even with the insane fees, users would still rather use ERC20 over other networks, so really this just tells you how much adoption and control Ethereum has in blockchain.


My current predictions are that ETH 2.0 Phase 0 will roll out sometime in November, this will allow users to start to use the staking mechanics of the eco-system and for things to slowly start to migrate over. From what we have seen so far all test-net solutions and rollouts have been incredibly successful in terms of both performance and adoption with a huge number of users signing up to help validate and test, this being with no incentive apart from just trying to push forward the Ethereum ecosystem.


I strongly believe that with ETH 2.0 launched, price action will see huge growth…


In terms of HTF price action, this is the chart I have been using since the start of 2020, and is what I’m currently using when it comes to watching HTF level that is key for bulls to maintain if we want to see new ATH throughout 2021. The first thing that is pretty obvious when looking at the chart above, is the fact that we have broken a resistance level that has previously been suppressing price action for the past two years. Similar to how Bitcoin is looking at the moment with price holding above $10,000, the overall breakout structure of ETH is looking great right now, and as long as we maintain strong support at that previous resistance price is looking healthy.


I’m expecting to see some accumulation or even a further pullback over the coming few weeks, maybe to around $280. This, of course, is all dependant on external factors such as uncertainty in traditional markets, COVID-19, and the presidential election all being a major factor on the bullishness of the market. While not directly correlated to ETH, the way investors, traders, and people all around the world are using and allocating their capital will of course be a major factor. As I have said in previous newsletters, while I am super bullish on Ethereum lets see what happens with the global economy and other important traditional factors before rushing in to buy.


I personally believe that the rollout of ETH 2.0 will really cement Ethereum as the number one blockchain in the cryptocurrency space, while it is already the most used, most adopted, and most developed blockchain, being the first blockchain to have the perfect balance of scalability, security and decentralization will be a major factor price will see a huge influx over the next 12 months. Combined with the fact DeFi and Ethereum related products are and have been seeing so much adoption, I think the network will have insane success in the coming future and I have a very high expectation for price. Going off marketcap and future growth models, I think the price can range somewhere between $3000-$5000 at the peak of the next bull market cycle.


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