As a seasoned analyst with over two decades of experience in the financial markets, I find Roman’s prediction about ETH somewhat plausible, albeit cautiously so. My years in the trenches have taught me that market trends can be as unpredictable as a rollercoaster ride, and Ethereum is no exception to this rule.
Anonymously known trader and analyst Roman has dared to forecast the cost of ETH, advising investors to tone down their immediate hopes. This prediction follows a decrease in excitement surrounding Spot Ethereum ETFs, as these funds are experiencing substantial withdrawals at present.
What To Expect From The ETH Price
As a researcher, I’ve taken note of Roman’s recent statement during his interview with Hall of Flame, where he expressed skepticism about Ethereum (ETH) performing exceptionally well in the near future. My analysis aligns with his viewpoint, suggesting that ETH might experience a comparable downturn, much like other altcoins, due to Bitcoin‘s dominance in absorbing market liquidity. This dynamic is causing altcoins to trade within narrow ranges, which could negatively impact Ethereum’s growth trajectory for the next few months.
Based on my extensive experience in the cryptocurrency market, I don’t anticipate that ETH will see a significant parabolic surge until traders start shifting their investments from Bitcoin into altcoins. When this happens, Ethereum is likely to take the lead among altcoins. This shift is expected to occur when traders believe that Bitcoin has reached or is near its market peak. In my career, I’ve seen similar patterns play out multiple times in the crypto market, and I think this time will be no different.
The analyst emphasized the stretch in 2020 when Ethereum struggled significantly until it reached $40,000. He pointed out that the value of Ethereum was approximately 80% lower than its record high (peak), while Bitcoin surpassed its records during this period. Notably, Ethereum is encountering a similar situation currently. This year, Bitcoin achieved a new peak, whereas Ethereum has dropped by more than 33% from its current peak of $4,890.
Simultaneously, Roman elaborated on how Ethereum would re-emerge when Bitcoin reaches or surpasses its maximum value, typically around the $120,000 mark. He pointed out that when Bitcoin undergoes a substantial price drop following this peak, traders who had profited from Bitcoin would move their earnings into Ethereum and other alternative cryptocurrencies.
It’s worth noting that the crypto trader thinks Ethereum’s prosperity hinges significantly on Bitcoin’s performance. He posits that for funds to move into ETH and other alternative coins, Bitcoin must keep reaching new peaks and soaring even higher. On the other hand, Roman anticipates that the liquidity transition will occur prior to the end of the year.
How Much Could Flow Into The Spot Ethereum ETFs
Anticipation for the Traded Ethereum ETFs has decreased since their debut on July 23, as some analysts such as Katalin Tischhauser from Sygnum Bank’s Head of Research department predict that investments into these funds might be less than initially anticipated.
According to Tischhauser, Spot Ethereum ETFs might only attract about 15% of the flow that Bitcoin’s ETFs receive, with approximately $5 being invested in these Ethereum funds during their initial year of trading. In contrast, Bitcoin Spot ETFs are projected to see a staggering $30 billion in investments during the same period.
The analyst made this prediction based on “Ethereum’s lesser name recognition” and ETH’s market cap compared to Bitcoin’s, suggesting that the Spot Ethereum ETFs will likely record less adoption and lower liquidity.
Since their launch, these Spot Ethereum ETFs have experienced substantial withdrawals primarily due to Grayscale’s Ethereum Trust (ETHE). However, this trend of continuous net outflows was broken on July 30, as data from Farside Investors indicated a positive inflow of approximately $33.7 million into these funds.
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2024-07-31 13:35