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Ethereum: do I sell the rally or pack my bags for the next bull run? -3

Ethereum and most cryptos are having a good couple days here. At the time of writing, ETH is above 1,550USD and up 20% week over week. For an investor new to the crypto space this may seem outrageous, or, one may wonder if the price could continue to increase at this rate into perpetuity. But for long time observers of the space this rally is hardly unexpected and a retracement back to, or at least near, the previous trading range is a virtual certainty. 

Bloomberg recently published The Crypto Story and if you are new to the space and looking for a comprehensive intro this is not a bad place to start. The author does an excellent job of laying out Bitcoin first before moving onto Ethereum and its children in part 2. I think the chronological order is still important to the narrative and ETH's place as essentially the second cryptocurrency lends it a good deal of prestige in the minds of many. I may have a bit more positive view of the technology than is presented in the article but the author is fair and obviously thorough. Some interesting points are made about de-centralization and distrust of government that may not have been completely fleshed out in the piece. The importance of holding wealth beyond the reach of a government actor is not fully understood from a western perspective. It is easy, as an American with full banking access, to trivialize the power that is essentially a permission free bank account. While this may be more of a Bitcoin related argument, I think that it makes up a core part of whatever intrinsic value these assets do possess.

To better understand the volatility and price action of ETH I generally turn to Ben Cowen (thankfully for those of us reading that last article on our phones his content is in video form). Before you roll your eyes too hard at a youtube video, I think it is worth taking a look at his regression bands and moving average analysis. He isn't always correct and rarely gives any kind of trading advice but his insight of the cycle volatility is useful in knowing what to expect one way or the other. Important to understand that the crypto price is more heavily tied to basic supply and demand pressures than, say for instance, a stock. Riding these waves to get yourself a good entry position is an important part of playing the game. 

Of course there is more research to be done and more to know about Ethereum. One interesting metric is active addresses. Notice that ETH and BTC are now running a virtual tie while all other networks are far behind. Further evidence that ETH and BTC are in a class of their own can be found here. All this to say Ethereum is a real project with exciting capabilities as well as exciting potential. The safest place for a crypto investment is simply holding BTC or ETH in your own wallet. The farther away you get from those assets in your own custody the riskier it becomes. There are other projects that I like and would like to highlight down the road, MATIC, ADA, and DOT to name a few. As always this is certainly not investment advice and meant for your general education and information.