Ether can value certainty: analyst
The price of Ether is included in most of the short-term macro risk and upcoming industry indicators, which is setting up a sideways trade for some time, according to crypto analyst.
“A lot of near-term uncertainty has been priced into Ethereum,” Pav Hundal, lead analyst at SwiftX, told Cointelegraph on Thursday.
“I wouldn't be surprised if ETH is down a lot in the next few weeks.”
Hundel added that geopolitical tensions, including escalating issues around Iran, and progress on the US CLARITY Act factored into the price.
The $19 billion liquidity event was weighed on Ether
After October's $19 billion liquidation event, Ether (ETH) still argues for a full recovery, confident that it is rebuilding confidence. “Ethereum has faced a double whammy in the short term,” Hundal said.
“The October meltdown took $19 billion out of the market, and now consumer sentiment is down to levels we haven't seen since 2022,” he said.
Hundred traders are focused on where the next wave of liquidity will come from, but ignore sentiment. “To me, consumer sentiment is a big story that nobody's really talking about,” he said.
The Crypto Fear and Greed Index, which measures overall crypto market sentiment, posted a “high fear” score of 13 on Friday, indicating heightened caution among crypto investors.
However, despite the cautious sentiment among retail investors, BitMine Immersion Technologies, the largest Ethereum mining company, continues to increase its holdings.
The company recently acquired 45,759 ETH, bringing the total Ether balance to 4,371,497 ETH, representing approximately 3.62% of the 120.7 million ETH.
Ether will test “very experienced investors” in the medium term
According to CoinMarketCap, Bitcoin hit a new all-time high of $126,100, while Ether fell 56.8% from its October peak of $4,687.
Ether trades at $2,021 at press time.
Related: Vitalik Buterin Outlines Quantum-Resistance Map for Ethereum
Hundall said he expects Ether to test even “the most experienced investors” in the medium term, but is watching for any signs that Ether may begin to outperform Bitcoin.
“It's a place where things can explode,” Hundal said.
According to TradingView, the ETH/BTC ratio, which measures Ether's relative strength to Bitcoin, is up 3.58% over the past seven days.
Magazine: AI Won't Make You Rich But Crypto Games Might, Axie Founder Drops: Web3 Gamer
