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Analyst Predicts Upward Trend for Ethereum (ETH) and Provides Explanation!
Analyst Predicts Upward Trend for Ethereum (ETH) and Provides Explanation!
The analyst asserts that recent data indicates a bullish market for Ethereum.
Author:
Elif Azra Güven
September 23, 2024 – 15:43
Update:
8 seconds ago
0
Ethereum, the largest altcoin, has overcome its underperformance against Bitcoin and has surged ahead after the Federal Reserve’s interest rate cut.
According to the data, since the Fed’s initial interest rate cut, ETH has gained over 16% in value, while BTC has only increased by approximately 6% during the same period.
This upward momentum in Ethereum aligns with a significant rise in the Ethereum rate, leading analysts to believe that there is a strengthening demand for long positions and an increasing optimism among investors that the price of ETH will rise.
Ruslan Lienkha, the market chief at YouHodler, stated to The Block that the rise against BTC and the surge in funding rates indicate a bullish market for Ethereum.
However, Lienkha cautioned that the Ethereum price is susceptible to correction if investors’ optimism about ETH becomes exaggerated or if external factors change.
“A positive funding rate for Ethereum reflects an increasing demand for leveraged long positions and indicates a bullish market outlook.”
The analyst pointed out that volatility tends to rise after an increase in funding rates in the cryptocurrency market, but he does not anticipate a long squeeze for ETH.
“Cryptocurrency funding rates exhibit significantly more volatility compared to commodity markets. While Ethereum has experienced a substantial increase in funding rates, it is currently very risky, in my opinion, to open a short position in anticipation of a long squeeze for ETH,” said Lienkha.
At the time of writing, Ethereum has seen a 16.3% increase over the past 7 days and is currently trading at $2,655.
*This article does not provide investment advice.
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