Ethereum has has a great run this year and December has seen the birth of CryptoKitties.
Why is this important, well it really put the Ethereum network under pressure and users are complaining about higher fees and transactions being stuck.
The point to consider here is how powerful the Blockchain tech is, a little game that went viral and is already attracting a lot of capital.
It is just a matter of time before a variety of these dApp games and more serious dApp’s take ETH to the new frontier, $1000 and beyond.
To the technical side of things, we can see the market struggling to maintain its bullish form and the ichimoku cloud is hinting that we are seeing some bearish action.
RSI is bearish on the shorter term.
First level of support to get tested will most likely be 440 and if that fails I will consider placing some buy orders slightly above $400 to catch the dip. If there is a situation where Bitcoin loses value and the kitties are pressuring the network prices could dip below $400 into the 300 zone where I think it should get bought up pretty quickly.
Taking a look at Ethereum VS Bitocin on the longer timeframe.
The candles paint a bloody picture for ETH against Bitcoin and we are currently testing a critical support zone at 0.034 – 0.032, should these levels fail there will be more speculators jumping out of the market.
With that said, “Be fearful when others are greedy and greedy when others are fearfull”.
Feel free to discuss any of my trades on our Slack. Safe trades!