The Ethereum rate still has a chance of surpassing $ 2,000, according to Cointelegraph analyst Marcel Pechman. At 3:00 p.m. Moscow time, the main altcoin is worth $ 1.3 thousand, and its value has increased by 110% over the past month, according to data from coinmarketcap.com. If the expert’s forecast turns out to be correct, the price of the asset will rise by more than 50%, writes RBC Crypto.
Pechman named three reasons that will drive the continued growth in the value of Ethereum. The first is the outflow of coins from trading floors. In mid-January, investors withdrew about $ 2.5 billion in ETH from the exchanges in two days. This trend continued, with the coin’s reserves on the exchanges dropping to a minimum since November 2018. The analyst believes that this speaks of the accumulation of cryptocurrency by investors, mainly large players – they transfer assets to over-the-counter wallets.
Pechman cited high trading volume and trader behavior as the second reason for future growth. After analyzing the data from the OKEx, Binance and Huobi exchanges, the analyst came to the conclusion that traders were actively buying Ethereum on January 22, when its rate fell below $ 1.05 thousand. Thus, market participants “bought out the drawdown”, which can be considered a positive signal, the expert is sure …
From his point of view, the third factor in favor of Ethereum’s rise in price is the decrease in the overbought index of the asset. As of January 19, ETH futures were trading at a premium of 6.5%. This suggests that the number of long positions on the altcoin prevailed over the number of short ones, that is, most traders expected growth, the expert explained. Later, on January 22, there was a correction. Some of the market participants sold the asset, due to which the premium fell to 4.5%. This is a “healthy” value for the indicator, indicating that the overbought asset has subsided, summed up Pechman.
Yesterday, January 25, Mike Novogratz, the head of Galaxy Digital, expressed confidence in the imminent growth of Ethereum quotes. He stated that the next target for the asset is $ 2.6 thousand, as evidenced by its price chart.
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