Doesn’t it feel strange lately with having an alt position? If it is running great, most of the traders feel a uncertainity that everything might crash again, as big moves on BTC are expected to start anytime. One of our favorite Safe Haven Assets in such times is ETH. Being the second largest Cryptocurrency (OK, recently run over by XRP due to its recent hype, but we assume it is temporary) it is one of the coins that remained relatively stable in wild times.
Now ETH gets some big news in January, as a hard fork is coming on the 19th of January. Similar to the Bitcoin Gold Hard Fork, where BTC holders have been rewarded with free Bitcoin Gold coins, ETH holders are going to receive the newly issued EtherZero. So if you are holding one ETH, you will get 1 EtherZero on a 1:1 basis. As we have seen already what this hard forks with free money can cause for the price on coins with a big marketcap we could see a huge spike on ETH within the next few weeks. We are still very early to entering this position and we think this could gain us some strong momentum. We can abstract a further catalyst, as per the following idea: uncertainty with the upcoming movements of BTC, people switch their stakes to ETH as safe haven + Hard Fork news in general (often seen as bullish fundamental catalyst) + free issued EtherZero coins = good odds for a nice ETH run, probably up to 0.1 BTC.
Things to consider: We can see some risk factors though:
- It is not yet clear which exchanges will support the new coin and how widely the issuing will be supported.
We have no sentiment about the support of the community for this coin yet. What will the miners say? We remember the Segwit2x debacle.
Keep in mind, that everyone can fork ETH or BTC and there are many useless forks. EtherZero does not look to promising. Despite that, we know how BTG has been perceived by the community and history often repeats.
UPDATE: The hard fork seems to be cancelled / postponed due to a lack of confidence by the Ethereum community. However, ETH remains bullish and we hold our position.