Ethereum is at decision point. The price seems unlikely to break effectively past the $170.32 level. This level has previously been a strong resistance and we are likely to see ETH/USD begin a downtrend from here in case it fails to effectively close above that level.
The S&P 500 closed the day in red after registering significant losses. The cryptocurrency market seems to be thriving on such developments which is more reason to believe how fake all of this really is. If Bitcoin rallies on such developments, I can understand that because there are people who will buy into the narrative that Bitcoin is digital gold and can be used as a safe haven asset. However, when the stock market begins to decline and every worthless altcoin starts to rally, you know there is a big problem.
The problem is not that people are accepting cryptocurrencies as a new asset class immune to the effects of the stock market. The problem is that there is a small number of people that are staging all this to make you buy into this narrative. The problem is that for the average investor this is going to end in tears. That is what the problem is here.
Ethereum no doubt is a wonderful technology and the same goes for Bitcoin. Are they worth their current valuation at this point in time? I don't think so. What's alarming is that it does not even matter what most of us think. These valuations are all propped up and are fake. I know "fake" is a strong word but if I don't use it most of you won't realize what is going on here. I traded penny stocks for a long time and I didn't use this word in that market as much as I have here because as fake as they were, there were businesses behind those stocks even if on paper which means you could hold someone accountable. Most of these crytpocurrencies are like....ether. If they vanish there will be no one to hold accountable.