Ether (Ethereum) has been on fire lately. Since the last analysis published by Capital in Momentum (its investment paper) and 21Millions (its newsletter devoted to cryptocurrencies), the prices of the main challenger to bitcoin and the queen of cryptocurrencies have both increased by 27%, a phenomenal increase in less than two weeks. Our expectation of a burst of price volatility has been spectacularly realized…
And the coming months could remain hectic, especially since the underlying trend is downether it is still not in doubt (at least at this stage) and that important events are on the agenda for the first quarter. after Union, ether may experience some volatility due to the next big update (Shanghai) which will include the release of 16 million ethers in March, notes Vincent Boy, market analyst at IG France. However, he judges that once the doubts are behind us, we can consider a good performance of ether against bitcoin, which is also the scenario favored by Capital, especially based on technical analysis.
Ethereum 2.0: what will “The Merge” update change?
Beyond the rise in ether and bitcoin prices since the end of 2022, which is driving more and more cryptocurrency investors to hope for an end to the medium-term downtrend and a resumption of the long-term, Vincent Boy opines that “optimism is too fast” and the “still too big” euphoria that the bear market has already ended.
Especially since “big hands” (investors with more than 1000 bitcoins – nicknamed “whales -“) remain skeptical about the scenario of a long-term recovery of cryptocurrency prices and “keep selling bitcoins” to “weak hands ” (more modest individual investors) , notes IG. “whales” a priori expect a new sequence of declines, or even a market capitulation (sudden price decline, against the background of high transaction volumes) before predicting a recovery gradual and stable market growth.
Bitcoin, ether (Ethereum)… cryptocurrencies rear their head: The Exchange Council
Also, the shock associated with the 2022 scandals (Luna, Celsius, FTX, etc.) continues to have repercussions. And the situation regarding Genesis and Gemini and by extension that of DCG has been “monitored” closely, notes IG, who adds that Binance, although stronger than FTX, is not immune to a liquidity problem…
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