• A true fact is that Ethereum entered a period of cooling off where many have lost interest in keeping their capital in that asset. Main reason, the high commissions of the network.

• Layer two networks want to stand out by making many people interested in having cheaper possibilities to make their transactions.

Amid the SEC discussion with Binance and Coinbase, many investors are losing interest in putting capital into circulation or keeping their capital invested in a certain digital asset.

However, not everything can be negative. In the midst of the bleeding, certain assets may be attractive and be in an economic trend with good expectations in the medium and short term. The truth is that few get to see that. They are simply swayed by current market sentiment.

The above is what always happens and has happened with Bitcoin mainly. Everyone is happy seeing prices go up, but when they see a correction, they run and smash the computer against the wall. Literal.

In order not to be so scared, Bitcoin, as the mouthpiece of this article opens, will still seek to define that transitory wave A. MACD is already pointing to a weekly correction and other momentum indicators are confirming the momentary downtrend.

That there will be a pullback will be between the points of $23k and $22k approximately towards that wave B that could take the price towards $33141 in the medium term.

From Network To Economic Asset

Since the birth of Ethereum, its hilosophy has sought to create a scalable solution for a "new World Wide Web". At the beginning of the primitive internet, the idea that to connect a client and a server was necessary; then this changed and it was possible to connect many clients with many servers, thus creating a network. But Ethereum broke that paradigm.

For this last year, Ethereum is being seen as the main solution for a new Web and an optimal solution to decentralize the world economy. All under the philosophy of the "decentralization of things" or simply "the decentralized internet of things".

However, in the midst of this philosophy, there is a problem that has not yet been solved for layer number one: high commissions. But is that positive or negative? The truth is that it is negative for those who see Ethereum as a transaction network, but positive for those with long-term thinking who see Ethereum as the "new Microsoft".

In the midst of this small problem, many will lose interest in making Ethereum a transitory asset, development environment or transaction network and will see it, as well as Bitcoin, an economic asset that can grow over time, even with this freezing problem. prices in the long and medium term.

On a technical level, we still wait for that 4D weekly wave correction that could take the price towards $1557.53, losing strength at the weekly EMA100 resistance. Ethereum has simply lost volume and volatility, a consequence of the freezing of the network due to the high commissions that are paid to be able to make economic and object transactions.

Indicators for the moment are already launching the confirmations of convergence of momentary low in the medium term, but in a lateral sontony within an ascending triangle. Next maximum resistance is at exactly $2312.

It is good to know that to the contrary of opinion, while the Ethereum price remains frozen, layer two solutions are gaining strength. In this article we analyze the main solutions, both fundamentally and technically.

New Network But With Potential

As coinmarketcap describes, Arbitrum is a layer 2 solution designed to enhance the capabilities of smart contracts on Ethereum.

The platform is designed to allow developers to easily run unmodified Ethereum Virtual Machine (EVM) Contracts and Ethereum transactions in a second layer, while taking advantage of Ethereum's excellent layer 1 security.

Technically, the ARB token entered a short-term correction sentiment, but many traders can accumulate from the $0.9294 to $1.2014 area.

We see the collecting pool in a wave 2 for short-term negotiations, but soon we will see the development of the next advance waves that could take the price much higher than $1.82. So it is not to panic due to low volatility and non-opportunistic sentiment.

Cheapest Best Option

As wrote Forbes, Polygon (MATIC) bills itself as a solution that improves on some of the clunkier aspects of Ethereum (ETH). It’s even dubbed itself as “Ethereum’s internet of blockchains.” Token is used to govern and secure the Polygon network and pay the network’s transaction fees.

Unlike some other cryptocurrencies with unlimited supply, the supply for MATIC is limited, with about $7.4 billion in circulation. There will never be more than 10 billion coins in circulation.

Matic is in its typical mid-term correction phase, caused by the controversial news of the last few days. However, the activity of the network remains optimistic with volatility and a tendency to maintain medium volumes.

Even this asset remains in a constant accumulation between $0.5 and $0.9, but in the long term we see that it could break the barriers of the average resistance of $2.90, appreciating more than 400%. Patience always rewards the strongest.

It Will Exceed Expectations

An important book of life says that "the first will be last and the last will be first". We reference this verse as an affirmation of our biggest surprise in this article. Optimism. 

That network, and as wrote the coinbase blog, is a fast, stable, and scalable L2 solution built by Ethereum developers, for Ethereum developers. Optimism’s EVM-equivalent architecture scales your Ethereum apps without surprises. Committed to building a sustainable ecosystem through retroactive public goods funding, Optimism is scaling Ethereum’s present to provide funding for its future.

Optimism allows you to do many of the same things as the Ethereum network, but for ~10x cheaper. Just like Ethereum, users of Optimism can interact with DeFi (decentralized finance) applications, as well as buy, sell, collect, and mint NFTs, etc.

And it is our main surprise because in the long term the creation of a trend of waves 12345 that will make the price reach insane limits is very noticeable. Consistent with Matic, high volatility and volume also prevail.

When that 2-week wave ends, we can see this asset jumping towards resistance above $1.486. The clear reason is that many will look for the cheapest way to take their cryptocurrencies from their private wallets to exchanges to generate compound interest financial operations.

Disclaimer: This is an informative article. Rubikkav is a media outlet and financial publisher, it does not promote, endorse or recommend any investment in particular without first making prior inquiries or carrying out the respective technical and fundamental analysis. It is worth noting that investments in crypto assets are not regulated in some countries. They may not be appropriate for retail investors, as the entire amount invested could be lost. Check the laws of your country before investing.

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