The Ethereum market has been recovering over the last couple of weeks, and even breached above the $4100 level during the Friday session. Because of this, it is very likely that Ethereum will start to recover into the new year, and it should be noted that there are huge options positions out there are betting on a massive increase in Ethereum pricing the spring. Because of this, a lot of traders have suggested that the beginning of the new year should see more Ethereum bullish pressure. This is something that I agree with as well and am positioned for.
The recent action has been a bit of an ascending triangle, and now that we have broken above the 50 day EMA, a lot of traders will use that as an entry point. It also helps that we have recaptured the psychologically important $4000 level, but at the end of the day, even though it has been quite choppy as of late, the correction was not as painful as it may appear at first look.
Pullbacks at this point in time are buying opportunities from what I see, and that is exactly how I am going to start playing Ethereum heading into the new year. I have no interest in selling Ethereum anytime soon, and I do believe that we will eventually make it to the $5000 level. I anticipate that January is going to be a very good month for Ethereum, just as the year 2022 should be. As the Ethereum 2.0 protocol gets finalized, that will make the gas fees dropped drastically and transmission time much quicker than we currently see. That has always been one of the big complaints about Ethereum, the ridiculous gas fees. Now that it is going to be a thing of the past, Ethereum will be used even more so than it is now as a layer 1 protocol.
Keep in mind that the market might be a bit skittish of the next few days as liquidity will be a major issue, but as we get closer to normal trading in the month of January, we should start to see more steadfast moves. In the short term, I am simply hanging onto my position and adding very slowly as it works out in my favor, just as I always have done when it comes to this market.
