- ETH/USD stays above $600, no follow-through.
- Mike Novogtraz speaks about the future of cryptocurrencies.
Ethereum stays marginally above $600 handle, but the further upside is effectively capped by 100-DMA at $612. Lack of follow-through signals that the recovery attempts are fading away, leaving ETH vulnerable to new losses. The second largest coin is mostly unchanged since the start of the day and up 2.5% in recent 24 hours.
Speaking at Bloomberg Invest New York Summit, Mike Novogratz, the founder, and CEO of Galaxy Digital Capital Management, explained that cryptocurrency industry is still in its infancy, which explains many of its faults and “misbehaviors”.
“Ethereum, which is one of the main leaders in the crypto space, is only three years old. If you think of the current market as a three-year-old child, it’s unreasonable to expect it to have the maturity of a PhD student,” he said.
For the last couple of years, the market has been dominated by retail investors, vulnerable to FOMO and FUD phenomena. The market will mature once this pattern is changed. At the same time, Novogratz believes that cryptocurrencies will not replace fiat money as regulators will do their best to prevent that from happening.
Ethereum technical picture
Looking technically, ETH/USD is stuck at $600 as the recovery proved to be short-lived. The coin needs to clear ultimate hurdle created by 23.6% Fibo at $652. Once above, the recovery may be extended to $700 with 200-DMA registered at $705. On the downside, an important support is created by $504.
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