Hey traders, haven't done an ETHE read in a while so here we go.
On December 2nd, 2020, Grayscale Investments Ethereum Trust ETHE declared a 9-for-1 stock split. Based on the Trust having 29,502,100 Shares issued and outstanding and each Share representing ownership of 0.09284789 of one Ethereum, after the effectiveness of the Share Split on December 17th, 2020 the Trust now has 265,518,900 Shares issued and outstanding, representing 0.01031643 of one Ethereum.
Grayscale ETHE has ~2,755,267 Ethereum according to their AUM on their website. That's about 2.4% of the entire supply of Ethereum, with 113,983,877 total ETH circulating. In other words, a decent chunk of the supply controlled by one entity.
Now in June 2020, ETHE had a spike upwards to whats now $28 after-split when the price of ETH was about $200 a coin. That's a pretty hefty premium for this stock and trading at about a 515% premium to ETH value. Now, December 2020 going into 2021, ETHE is trading around $16 with the current value of ETH being $600 which doesn't make a whole lot of sense.
Realistically, the price right now should be at least $31.50 if investors kept true to the premium. However, it is not like that and we're seeing some accumulation around $13.8889 - $15.9722.
It looks like we hit the top of the 2nd cycle this week and have fallen 33% in the span of 2 days. I don't think this dip will go much lower than $13.889 as that is the start of the uptrend and is a local bottom signal. I'm expecting a reversal off of this level, going long towards:
TP1 🎯 $15.9722
TP2 🎯 $22.5544
TP3 🎯 $31.5000
Okay some detail about these $31.5000 and $40.50 levels, they are both the absolute bottom levels before the stock split 9:1 earlier this month. Right now the $4 level of support I have marked represents the $40.50 level that's still drawn out on this chart. From what i've been noticing is that these pre-split drawn levels of support turn into resistance levels on the post-split chart. I saw this exact pattern play out in TSLA where all the levels of support drawn pre-split turned into take profit levels going long as resistance.
I hope that makes sense traders and please trade this stock with caution it is an ETF that says it represents shares of Ethereum with $1.7B AUM but as always tread with caution.
This is a daily chart so i'm not expecting a reversal right away, but it should happen and going long to my TP levels. Will not happen overnight!!!! <----
Cheers and happy holidays traders!
On December 2nd, 2020, Grayscale Investments Ethereum Trust ETHE declared a 9-for-1 stock split. Based on the Trust having 29,502,100 Shares issued and outstanding and each Share representing ownership of 0.09284789 of one Ethereum, after the effectiveness of the Share Split on December 17th, 2020 the Trust now has 265,518,900 Shares issued and outstanding, representing 0.01031643 of one Ethereum.
Grayscale ETHE has ~2,755,267 Ethereum according to their AUM on their website. That's about 2.4% of the entire supply of Ethereum, with 113,983,877 total ETH circulating. In other words, a decent chunk of the supply controlled by one entity.
Now in June 2020, ETHE had a spike upwards to whats now $28 after-split when the price of ETH was about $200 a coin. That's a pretty hefty premium for this stock and trading at about a 515% premium to ETH value. Now, December 2020 going into 2021, ETHE is trading around $16 with the current value of ETH being $600 which doesn't make a whole lot of sense.
Realistically, the price right now should be at least $31.50 if investors kept true to the premium. However, it is not like that and we're seeing some accumulation around $13.8889 - $15.9722.
It looks like we hit the top of the 2nd cycle this week and have fallen 33% in the span of 2 days. I don't think this dip will go much lower than $13.889 as that is the start of the uptrend and is a local bottom signal. I'm expecting a reversal off of this level, going long towards:
TP1 🎯 $15.9722
TP2 🎯 $22.5544
TP3 🎯 $31.5000
Okay some detail about these $31.5000 and $40.50 levels, they are both the absolute bottom levels before the stock split 9:1 earlier this month. Right now the $4 level of support I have marked represents the $40.50 level that's still drawn out on this chart. From what i've been noticing is that these pre-split drawn levels of support turn into resistance levels on the post-split chart. I saw this exact pattern play out in TSLA where all the levels of support drawn pre-split turned into take profit levels going long as resistance.
I hope that makes sense traders and please trade this stock with caution it is an ETF that says it represents shares of Ethereum with $1.7B AUM but as always tread with caution.
This is a daily chart so i'm not expecting a reversal right away, but it should happen and going long to my TP levels. Will not happen overnight!!!! <----
Cheers and happy holidays traders!
