Don't FOMO, just JOMO.
Let me get something straight right from the beginning. ETH is for a reason the second most valuable coin out there. It deserves to be there, but this doesn’t mean we are not going to see some extreme volatility in the following months. Based on the current trends and developments this volatility may just be a downtrend.
Let us look at some facts. We shall begin with ETH 2.0 Shanghai update.
With the Shanghai update for Ethereum (EIP-4895), ETH holders will be able to withdraw their staked ETH as validators. After Proof of Stake was introduced, users staked 32 ETH to become network validators, but the money was locked. With the update, this indefinitely locked ETH will become unlocked.
You may say I am a fool, but all I see is a bunch of ETH coming back as supply and there is no new demand out there, that could fight against it.
Let me argue further why this unlocking will dramatically lower the ETH’s price. The firstcomers who staked their ETH paid “just” $600 for 1 ETH, today that is worth 3x more. Even I, a diamond hand holder, would sell some of the staked ETH.
One more argument and then I am done.
We are deep in the bear market. There are still firms going bankrupt and there is still SEC going after DeFi projects and exchanges. Macroeconomics does not indicate that all is good again. Logically, you need to ask yourself why is the crypto-market pumping so much recently. Is it just because the general market is green? Or is it because someone wants to sell all of that unlocked cryptocurrency at a higher price. If I have learned something, is that the crypto-world is extremely manipulated. This might be just the next way in a line of many ways how to get money from retail traders that will FOMO in. Don’t do it. Don’t go all-in.
One thing he is right through – the trading volume is dropping fast, a reversal could be around the corner.
I can’t tell you if this is an actual bull trap, and it appears that technical analysts and industry observers are not sure either.
Tip of the day. Don’t FOMO, because sometimes you need JOMO.
JOMO
= Joy Of Missing Out
