ETHUSDT (Buy) | S6T4 - Team Trading Post for Fredquantum-Kouba01 Traders Team
Hello everyone, this is the fourth week of the newly introduced steemit trading contest. This contest requires us to make an analysis of a certain token and then place a trade order on it. This is my second post of this week and I will carrying an analysis on the ETHEREUM token in this article. The details can be seen below.
The name and introduction of the project token, and which exchange can be traded on, project/technical/team background etc.
The Ethereum blockchain is the second blockchain to be introduced after Bitcoin. And at this point in time, Ethereum is the largest smart contract blockchain available. The native token of this blockchain is known as Ether(ETH). Ethereum was developed with the intention of using it as a means of carrying out transactions and also used as means of paying bills without any third party interventions.
Source
The Ethereum blockchain was developed by Vitalik Buterin who was a Russian programmer together with some of his crew members. This Blockchain was developed to ensure that several tokens and decentralized applications can be built on the blockchain. It was meant to be a reliable backup to the already introduced Bitcoin. Up to date, there are several projects that have been developed on the Ethereum blockchain and this has helped in the growth of cryptocurrencies in general.
The consensus mechanism used in the development of this blockchain is known as the proof of work consensus mechanism. That is similar to that of Bitcoin. Due to this, the Ethereum blockchain is slow in its transactions and it also has very high transactions which is a very big problem on the blockchain whose solutions are still to be found. Some have helped to improve the blockchain and others haven't made any difference.
The Ether coin can be found on almost all exchanges because it is a very popular coin and arguably the most popular after Bitcoin. Some of these exchanges include; Binance, Huobi pro, KuCoin, Poloniex etc.
Why are you optimistic about this token today, and how long do you think it can rise?
The Ether token is one of the coins I am very optimistic about. This because it is one of the most popular tokens and many people invest in it hence ensuring it has a very bright future. The ETH token has one of the highest market capitalization and its circulating supply is very low which means that it has a high demand in the market.
The Price of Ethereum keeps rising since it's inception due how strong the project is. Those who made huge investments in the ETH token in the past have made massive profits in the market. So due to this I am very optimistic that this token will still make a huge rise in the future and it is worth investing in.
Now let's look at the statistics of ETH on the CoinMarketCap.
CoinMarketCap
CoinMarketCap
Looking at the screenshot above, we can see that the ETH token has a market cap of $409,385,003,849.02. It can also be seen that the ETH coin is ranked #2 among the coins listed on coinmarketcap which means it is only behind Bitcoin in the pecking order. This shows how popular the ETH token is and how it is highly rated among the coins.
We can also see that the ETH coin has a circulating supply of 120,184,838 ETH. This low supply means that the demand in the market is very high which means that the price is very likely to rise in the near future.
On November 16 2021, the ETH coin made an all time high of $4,891.70. and this is the highest ETH has ever reached till date.
Analyzing the token
In this section, I am going to make a technical analysis on the ETH token. I decided to use the Candlestick for this analysis because these candlesticks are very clear to read on the charts and also reduces noise within the prices in the chart. I also added three different indicators to confirm my entry point. These indicators include; the EMA, Parabolic SAR indicator as well as the RSI indicator.
Screenshot from: Tradingview
As we can in the chart above, I started by marking the support and resistance levels with two horizontal lines. We could see that the price recently bounced off the support level and making an uptrend. So this move was a very good signal of a bullish trend that is likely to be continuous. I also added the EMA indicator to the chat. We could see on the chart that the EMA line moved below the last candle of the candlestick. This is also a signal that there was a bullish trend.
Screenshot from: Tradingview
After this signal, I then went on to add the Parabolic SAR indicator to confirm the earlier signal given by the EMA indicator. We could see that the dots of the parabolic Sar indicator started forming below the price. This is also a signal of an uptrend and this goes on to further confirm my entry point.
Screenshot from: Tradingview
Then finally, I proceeded to add the RSI indicator for the final confirmation of my entry point. As we can see in the chart, the RSI indicator moved below the 30 region which confirms my entry point.
After all these confirmation, I went to the Huobi pro exchange and placed my buy order. The details of the trade can be seen in the screenshot below.
Screenshot from: Huobi pro
The order was filled at an average price of $3377.19.
Your plan to hold it for a long time or when to sell?
There are obvious reasons I like to hold the ETH token. The Ethereum blockchain has an upgraded version which is known as the Ethereum 2.0 This upgraded version will help to reduce the transaction fees in the platform. This will help attract a lot of new users into the platform which will help in the growth of the platform. The Ethereum blockchain keeps growing due to this and for this reason I will be holding my token for a long time.
The large nature of the smart contract blockchain is also one of the reasons I will be holding the token. The blockchain has so many decentralized applications and other projects that help in the constant development of the blockchain. This means that most people keep investing in this project and it keeps growing. This shows that it will make sense for me to hold this coin and benefit from it in the future.
Do you recommend everyone to buy? and the reasons for recommending/not recommending.
For the same reason I will be holding this token, I will recommend that most people should hold the ETH token and due to the good project of the Ethereum blockchain. The ETH token keeps growing and the price keeps rising and this shows that holding the coin will help.
A lot of projects and Dapps have been developed on this blockchain and this is a signal of future development and anybody who invests in this token will not regret it.
However, I will advise that anybody who wants to invest in this project should do their own research on the coin before making any decision. This will ensure that you will also get much knowledge on the token and project before making any move.
Anything other users want to share about the token/project.
Anybody who needs information on the Ethereum project can visit this Site for more information. A lot will be seen on this site.
The Whitepaper of this token can also be seen here.
Conclusion
All the things needed to be known about the Ethereum blockchain and the ETH token have been discussed in the above analysis. The trade carried out also gave some good entry points and I hope the trade goes as planned and I make some profit from it.
The Ethereum blockchain is growing at an exponential rate and this makes it very attractive to be invested in.
Cc:
@fredquantum
@kouba01