Bitcoin Shows Stability with Analysts Predicting Ethereum’s Potential Recovery by Year End

The cryptocurrency market saw limited movement on Friday, with Bitcoin trading at $58,020, showing a marginal 0.4% decline in the last 24 hours and a 5% decrease compared to a month ago.

Analysts are eyeing a possible bottoming out of Ethereum (ETH) over the next 2-4 months due to low trading volumes leading into the weekend. Ethereum, the second-largest cryptocurrency by market cap, has experienced a slightly steeper decline, dropping 0.8% to $2,345 in the past day according to CoinGecko data.

Ethereum has notably underperformed Bitcoin over the past month, with a 15% decrease compared to Bitcoin’s 5% drop.

Analysts at 10X Research suggest that Ethereum might be nearing oversold conditions in the medium term, cautioning against expecting an immediate turnaround but predicting a potential bottom forming in the next few months.

The team recommends monitoring indicators like RSI and Stochastics for signs of a reversal from deeply oversold levels. RSI measures price movement speed to identify overbought or oversold conditions, while Stochastics compares a security’s closing price to its range over a specific period to predict market reversals.

In the ETF market, there are diverging trends between Bitcoin and Ethereum products. Bitcoin spot ETFs received a net inflow of $39 million on September 12, with ARK’s (ARKB) and Fidelity’s (FBTC) leading with $18.3 million and $11.5 million respectively.

On the other hand, Ethereum spot ETFs saw a net outflow of $20.1 million on the same day, mainly driven by Grayscale’s (ETHE) fund.

James Davies from Crypto Valley Exchange CVEX.XYZ noted that broader economic factors are influencing the markets, with tech stocks rallying globally and positive economic and growth data encouraging investments.

Looking ahead to the U.S. presidential elections, Darren Franceschini of Fideum anticipates sideways price movement leading up to November. The election outcome could significantly impact cryptocurrency acceptance and regulation in the U.S. financial markets, potentially catalyzing market growth with a crypto-friendly president.

Franceschini expects high trading volumes with minimal price movement until there is more clarity on the regulatory front.

This article was edited by Stacy Elliott.