Bitcoin Stalls While Analysts Predict Ethereum’s Possible Bottom by Year’s End
The cryptocurrency market saw limited movement on Friday, with Bitcoin trading at $58,020, showing a slight 0.4% decrease in the last 24 hours and a 5% drop from a month ago.
Analysts are predicting a potential stabilization of Ethereum (ETH) in the next 2-4 months due to low trading volumes ahead of the weekend. Ethereum, the second-largest cryptocurrency by market cap, experienced a slightly more significant decline, down 0.8% to $2,345 according to CoinGecko data.
Ethereum has notably performed weaker than Bitcoin recently, with a 15% decrease compared to Bitcoin’s 5% decline over the past month.
Analysts at 10X Research suggest that Ethereum may be nearing oversold levels in the medium term. While an immediate rebound is not expected, the firm anticipates a possible bottom forming in the next few months. They recommend monitoring indicators like RSI and Stochastics for signs of a turnaround from oversold levels.
The ETF market shows differing trends between Bitcoin and Ethereum products. Bitcoin spot ETFs saw 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. In contrast, Ethereum spot ETFs experienced a net outflow of $20.1 million on the same day, mainly due to Grayscale’s (ETHE) fund.
James Davies, from Crypto Valley Exchange CVEX.XYZ, noted that broader economic factors are influencing the market positively, with tech stocks rallying and favorable economic data driving investments.
Looking ahead to the U.S. presidential elections, Darren Franceschini, Cofounder of Fideum, expects sideways price movement until November. The election outcome could significantly impact the acceptance and regulation of cryptocurrencies in U.S. financial markets.
A crypto-friendly president could spur market growth, but trading volume may remain high with minimal price fluctuations until there is more clarity.
In conclusion, the cryptocurrency market remains in a state of flux with potential opportunities for investors to monitor indicators and market trends closely for potential future movements.
