If anyone looked at Ethereum's chart a week or two ago, it looked awful:

 https://img.leopedia.io/DQmNvBgX88zBW9Kb4gaLhNsrGuomVLkjzsCco84vDtSfD9C/image.png 

With a double top and a sharp decline on the weekly chart, it seemed like it can't hold to any support. Now it temporarily bounced from another support line, but is this a reversal or another dead cat bouncing?

I don't know...

What I do know is that the crypto market - including alts - sort of stabilized lately, and if good news follow, they might go back up. My crypto holdings are very biased for this alternative so, if the other happens until the end of the year, I won't be happy.

Regarding Ethereum, I am not very well informed about the security of new chains, so... is it still considered one of or the most secure big chain besides Bitcoin? Here I am not talking about ETH hacks and things like that, which happened recently either on CEXes or maybe (although I'm not aware) at the level of certain smart contracts where people lock their funds. By doing either of those operations, people send their ETH or other crypto to another entity (CEX or smart contract), so it's not in their possession anymore until they claim it back to their self-custody wallet (if they do). And the hacks happen at those ends, usually, so it's not really Ethereum base-layer's fault.

Sure, what most people don't like at Ethereum (including myself) are the fees. But when moving enormous amounts of money, that fee is small, if the security provided and the liquidity is the highest one can find.

The biggest stablecoins, USDT and USDC, are multi-chain now. They both started on Ethereum, and probably still experience their highest volumes there.

I don't know if there could be a big enough stablecoin that could ignore Ethereum, if it works on the existing public chains. If it's on a private chain, maybe, but they'd be trading more market share for more control and non-public transactions. I'm sure there will be enough of this kind of stablecoins too.

But from the stablecoins that will work on public blockchains, the biggest ones will be at least partially be on Ethereum, most likely.

Now... The EU has crypto regulations (awful ones - worse than banks - and more awful ones are coming regarding digital IDs), UAE has some crypto regulations, the US is getting ready to create their own stablecoin regulations.

Once everything is clear, I expect more stablecoins to pop up, some from major corporations (Meta?, X?, Apple?, Amazon?, Microsoft?, banks?, retailers? etc.). If China jumps onto the stablecoin's train (although I doubt they'd support USD-based stablecoins), their major corporations could adopt them in no time. However, China has the digital Yuan, at least for the internal market. But for export, they'd need something else...

As you can see, many of the corporations I listed above could be waiting for the American regulations on stablecoins, if they are interested in adopting them. If only a fraction of them end up on Ethereum (or any other existing big chain), that's almost a guaranteed bull crypto reason. Imagine Meta releasing a stablecoin (or even announcing it). They tried before, but back when crypto went under the crackdown period, so that didn't work out for them. But how about now? 2bn users or how many they have using a US-backed stablecoin. Why would they be stopped... again, by the Americans?

Sure, in their first attempt, they created their own chain. Even that would be ok, as I imagine it would interact with the rest of crypto.

Well, if WW3 won't start (and chances are it won't... for now), we have good chances to see a good end of the year in crypto. But it depends how fast Americans move with these regulations and how bad they are, because they are unlikely to be good, like many regulations...

Posted Using [INLEO](https://inleo.io/@gadrian/will-ethereum-heat-up-as-stablecoins-move-into-a-higher-league-fw4)