Something to remember if you’re a bull or a bear;
Look at the post ATH behavior of Ethereum (ETH):
- $20 -> $6.40 = 68% off ATH (Nov 2016)
- $400 -> $130 = 68% off ATH (May 2017)
- $1400 -> 625 = 66% off ATH (Feb 2018)
Price of Ethereum July 2016: 10$
History repeats itself. You're insulting the hodlers if you think continued growth long term is unsustainable; it just alerts us to the shortness of your trading/mental timeframe; none of us ever expected a straight line; the long term trajectory is what's more important.
As such on the lifetime log charts and with historical knowledge I'm giving a fair warning; this could be an amazing point of entry for a long in spite of all the panic. If anything history has shown us it is an amazing point for a long if you are willing to take the calculated risk that the bull market long term is still intact.
You're going to see a lot of FUD, a lot of panic. If you're a bull this means we're close to the end of the current correction and consolidation is due following a bounce. As long as solid support exists at a higher low than previous ATH; no big deal.
This year still looks incredible for ETH in terms of liquidity and economics;
Increasing public awareness (network effect catch up + public educating themselves better).
PoS implementation very likely (passive income for a growing non-speculative potentially essential asset will appeal to institutional investors + this will reduce inflation and lead to massive supply lockup on a background of increasing demand for ETH/gas).
Sharding/working scalability solutions (both on/off chain) will likely mature with further deployments.
Ethfinex and decentralized exchanges running on ETH will encourage growth/pumps in ETH and it's ecosystem of ERC20 tokens; these are in ETHfinex's best interests after all to see the market grow and if you believe the tether rumours (I do) I don't see why this won't happen.
The potential impact of DAI stable coins in causing ETH to be locked up by the makerDAO (liquidity squeeze combined with PoS will dramatically reduce circulating ETH supply). The potential demand for stablecoins is massive especially in jurisdictions such as the UK where you aren't taxed per trade but on conversion to fiat only.
Thus even in a large scale market wide correction; I struggle to see ETH being undervalued for very long; if anything we are just getting started. For me that makes selling (especially the potential bottom which current prices might be) very difficult
Full disclosure/Disclaimer: As of posting I am long Particl (PART), Ethereum (ETH), Wetrust (TRST), Augur (REP), OmiseGo (OMG) Factom (FCT), Iconomi (ICN) and Bloom (BLT). All the opinions expressed are my own. I cannot guarantee gains; losses are sustainable; do your own financial research and make your decisions responsibly. All prices and values given are as of time of writing (Jan 2018).