Ethereum repeating its $4,878 high by year-end is “possible, but highly unlikely.” This is what Cointelegraph said Derive founder Nick Forster.
The expert is convinced that ETFs created on the basis of the asset are inferior to shares of technology companies that bring “higher income.” Also, the second-largest cryptocurrency by capitalization does not have a “strong narrative capable of moving the price.”
According to the options market, the probability of a return to ATH scenario is 10%, Forster said.
In his opinion, three main events must coincide for implementation:
- Donald Trump’s victory in the US presidential election;
- aggressive rate cuts Fed;
- a broader increase in global financial liquidity.
Forster noted that the potential surge in volatility as a result of the announcement of the US election results could reach 10-15%. In this respect, the effect could exceed the launch of ETH-ETF trading.
A trader who goes by the pseudonym Zen warned that the Fed’s easing of monetary policy may not bring the expected positive response.
#Ethereum reached dip buy zone I’ve marked about 2 weeks ago. There was an option with long above 2800, but price action shown that $ETH is not ready. And it went down fast together with the rest of the market.
Now not that clear. Feels like price will grow higher, but to… pic.twitter.com/3l70ijMWhM
— Zen (@WiseAnalyze) September 4, 2024
Trader Titan of Crypto noted that the RSI has dropped into the oversold zone on the three-day chart, creating potential for recovery.
#Ethereum Ready for Liftoff?
Historically, when the RSI is in or near oversold territory on the 3D chart, #ETH sees either a rally or a short-term pump.
Either way, an upward move seems just around the corner. 📈 pic.twitter.com/si8Ab0rMls
— Titan of Crypto (@Washigorira) September 5, 2024
In August, Nansen noted that the weakening optimism among Ethereum investors had a more significant impact on the asset’s price than the outflow from related ETFs.
That same month, QCP Capital noted that the second-largest cryptocurrency by market capitalization was lagging significantly behind Bitcoin. They also warned of a likely continuation of the market correction in September.
Earlier, CryptoQuant estimated the drop in the price of Ethereum against digital gold at 44% after the transition to the Proof-of-Stake consensus algorithm.
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Source: Cryptocurrency
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