Ethereum price dips 5% overnight: Here’s what the experts are saying

Posted: 9 June 2021 4:27 pm
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Ethereum is currently showcasing year-to-date (YTD) profits in excess of 70%

  • Experts believe following next month's London hard fork, ETH may once again start surging.
  • Since the start of the year, Ether has outperformed Bitcoin by nearly 60%.
  • Over the course of the past month, the total market cap of the crypto sector has dropped by a staggering 65%.

After seemingly having established strong support around the AU $3,400 - AU $3,600 range, Ethereum, the world's second largest crypto by market capitalization, seems to once again be losing value, as is best highlighted by the fact that over the course of the past month alone, ETH has lost more nearly 40% of its value. At press time, the altcoin is trading at AU $3,150.

In order to gauge what seems to be happening with Ether and what the future may have in store for the currency, Finder spoke with Marie Tatibouet, chief marketing officer for cryptocurrency exchange Gate.io. In her view, with EIP-1559 all set to go live next month, things seem to be looking good for the premier altcoin adding:

"The EIP brings in two crucial features. Firstly, it makes ETH a deflationary asset since it burns ETH tokens that would make up the "BASE FEE." This will have a positive effect on ETH's price as demand increases with time. Secondly, escalating gas fees are massive barriers to adoption for both users and developers. Post EIP-1559, the gas fees will be considerably more manageable."

Is Ether heading for another bear run?

There is no denying that ETH has severely outperformed BTC in recent months, as is best highlighted by the fact that since the start of 2021, the altcoin has exhibited gains of more than 70% as compared to Bitoin's profit ratio of just over 10%.

In this regard, analysts at Delphi Digital, an independent market research firm, believe that while ETH continues to outperform BTC, it seems as though another period of turbulence may be incoming for the former. This is because Ether has continued to showcase a wedge pattern since the latter half of May, thereby leading many analysts to believe that the asset may crash once again in the coming few weeks.

How to buy Ethereum

Looking ahead

The next month or so will be crucial for the crypto industry, especially as an increasing number of weak hands continue to be weeded out from this space — seemingly each and every day. Furthermore, it should also be noted that since May 12, the total market capitalization of the digital asset sector has dropped by more than 65% — sliding from $2.5$ trillion to $1.54 trillion. Therefore, it remains to be seen how things play out from here on end for this rapidly evolving market.

Interested in cryptocurrency? Learn more about the basics with our beginner's guide to Bitcoin, dive deeper by learning about Ethereum and see what blockchain can do with our simple guide to DeFi.


Disclosure: The author owns a range of cryptocurrencies at the time of writing

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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