Crypto Industry News:
Messari's Ryan Watkins predicts that once the Eth2 initialization routine is complete, ether could overtake Bitcoin as the world's largest digital asset.
In his media speech, Watkins noted that while he does not know "if and when" Ethereum will replace Bitcoin, he believes that ETH could prove to be the leading digital resource in the future for Eth2's sake:
"The advantage of Bitcoin over Ethereum as a store-of-value asset is that its monetary policy is very predictable and the Bitcoin blockchain is very secure. I think that after switching to Eth2 and Proof-of-Stake, [...] Ethereum could potentially be more secure than Bitcoin. "
Watkins also highlighted the changing economy of Ether during the transition to Eth2. He stressed the importance of the expectation that the incoming Ethereum combustion mechanism would cause ETH to burn at a rate that exceeded the creation of new supply.
"Ethereum's monetary policy will actually change in Eth2 so that it will actually not just be less inflationary than Bitcoin, but it will actually be deflationary. So every year there will be less and less ether as it will be burned.
The representative of Messari also noted the "mass" and "diverse" economy built on Ethereum. He suggested that the booming sector of decentralized web applications would attract new users at a faster pace than Bitcoin over time.
Technical Market Outlook:
The ETH/USD pair has made a false breakout and got back to the consolidation zone located between the levels of $1,720 - $1,816. The false breakout happened because the consolidation zone is very close to the lower channel line that was recently violated and now bulls are not quite able to come back up inside the channel. Moreover, the breakout has ended with a Doji candlestick, so the bears are still defending the channel. If the price will go back to the consolidation zone, then the false breakout to the upside will be invalidated and there will be more chances for a bearish breakout to the downside.
Weekly Pivot Points:
WR3 - $2,266
WR2 - $2,113
WR1 - $1,975
Weekly Pivot - $1,820
WS1 - $1,716
WS2 - $1,552
WS3 - $1,423
Trading Recommendations:
The longer term up trend on the Ethereum continues despite the local counter-trend corrections. When the correction is terminated, the next long term target for ETH/USD is seen at the level of $2,100. The key long term technical support is seen at the level of $1,412, so only a weekly candle close below this level will invalidate the bullish scenario.