by
W. Paul Alexander
for
Better Call Paul Blog
Hello Everyone,
Over the last week or so, I have shifted to a pattern of daily short posts that look at several of the major assets and their change from day-to-day. I also will write special long-form pieces from time-to-time. Today, I'm making a quick post for one reason and one reason only, and that's because the news is so significant it needs to be the sole focus of a concise piece meant to convey something quickly to my audience.
The $1000 threshold for Ethereum has been breached, and ETH is trading just around $1020.00 right now.
Why is this so important?
Think about the significance that society places on "one-thousand dollars." The number itself is a large, prominent number that represents a rather large portion. It begins the next column after 100 in the base10 counting system. One-thousand dollars is known as a "grand" or a "stack," while hundreds are colloquially "bills." It is sometimes written as "1K or 1G," a unique phenomenon. All of different ways that society references this number comprehensively contribute to the psychological threshold that the cryptocurrency markets and analysts have discussed in terms of Ethereum value.
Other numbers have extraordinary psychological significance in society: 666 is the number of the devil, 69 is a sexual position, 13's are unlucky or lucky, as are 7's, for example. DeFi investing apps such as Coinseed and stock apps like Stash use psychological thresholds for the "next milestone" section of the welcome screen.
With the price of Ethereum, it's exactly the same.
The 1K threshold, many believe, will solidify Ethereum as the #2 crypto for a very long time to come, but will also trigger a very, very fast rally that could smash through resistance due to the extreme significance that we subconsciously place on $1K. At around 2:00 PM EST on January 4, Ethereum reached $1020.
So, that threshold that we have assigned has been shattered, finally, after a beautiful rally that brought Ether price to a short plateau around $730-700, then a dalliance with the $900's, and just a couple of hours ago, broke through the $1K (see how I did that?) threshold.
Now the this threshold has been breached, the next psychological threshold is really each thousand increment and $5K (minor); but really $10K, which makes the transition from 4-figure to 5-figure. Those are ambitious numbers, to say the very least, and I'm not at all endorsing the view that ETH will hit these anytime soon. In fact, I think it will be quite some time before the next thresholds will be reached.
Anyway, that's all I wanted to say with this mid-day post. It's such an exciting time to be alive, with a pandemic raging, political turmoil, mass social unrest, and.....all-time high stock markets and cryptocurrencies. It's almost as if the entire world is getting just a massive dose of the volatility that we have sustained for years as society teeters between extremes.
Have fun during these times. Trade, trade, and trade until you're happy with your return.
