Analyst On Why Ether Looks Prepped For Next Leg Up After Experiencing A ‘7-Month Bear Market’

Source : zycrypto.com

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  • The price of Ether has been faltering following the dip from last month’s all-time high.
  • However, one analyst holds that the Ether market has been turbulent since May.
  • According to the pundit, the price of Ether is now poised for a leg up.

ETH, the native currency of the Ethereum blockchain network has recently had a stormy price trajectory. The price has dropped significantly following a spectacular run that saw it set a new all-time high of $4,860 last month.

Ether currently trades at $4,010, down 1.06% in the last 24 hours and roughly 15% lower than its all-time high. While it has been picking up in the past few days, some market observers are saying the price can perform much better.

According to market analyst “Krugman,” several indicators show that the price of Ethereum has been in a bear market for a remarkable 7 months. This, according to him, is because the current price is essentially the with its May high of $4,168.

“$ETH has been in a bear market for 7 months, at essentially the same price it was in May. The recent OI and funding rate puke was the final capitulation of this bear market and is prepped for the next leg up.”

However, he judges that the bear market is throughout and ETH is now poised for a price uptick. He adds that this is indicated by the recent drop in open interest (OI) and funding rate for Ethereum. 

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The total aggregated open interest on Ethereum futures currently stands at around $10 billion according to data from Coinglass.

ETHUSD Chart by TradingView

Has Ether really been in a bear market?

The claims by the market aficionado can be disputed as the crypto market has had its ups and downs this year. The price of Ether has grown 462% year to date. In the last six months, it is up 65.8%, having surged significantly on the back of the London Hardfork Upgrade that introduced coin burning and brought the network closer to migrating to proof-of-stake.

The entire Ethereum ecosystem has also been expanding as the network was the rallying point of major activity in both the DeFi and NFT sectors of the blockchain industry. The smart contracts platform still stands as the biggest enabler of these two highly promising sectors, continuing to outdistance its competitors and the so-called “Ethereum killers.”

There have also been complaints about the Ethereum network that have included high gas fees and slow transactions due to network congestion. The Ethereum network however has plans for the future to solve these problems by bringing more scalability.

While the current trend across the entire crypto-market since Bitcoin and Ethereum reached new highs last month can be called bearish, it is not certain that Ethereum’s bear market started in May. Regardless, the price of Ether holds a lot of promise for next year. This is because institutional adoption continues to grow, along with investor enthusiasm.

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