Ethereum’s price could dip to AUD$2,150 in the near term, research suggests
ETH's technical indicators remain weak as investors continue to wean from high-risk assets, including crypto and stocks.
- Despite the recent volatility, analysts believe Ethereum's long-term prospects continue to be bright.
- After forging a minor comeback, Terra's native crypto token Luna has once again lost all of its value, currently trading at US$0.00023107.
- The UK's High Court of Justice recently issued a ruling in which it classified non-fungible tokens (NFTs) as "private property".
The last 72 hours have seen the price of Ethereum (ETH) recover by around 20%, helping it stay above the all-important AUD$2,900 (US$2,000) resistance. ETH is still down 27% over the past 14 days and is currently trading at AUD$3,013.
Technical indicators suggest that the coming few days could see the asset dip to AUD$2,150 (US$1,500), a further 25% below its current levels. ETH has dropped by more than 50% over the past 4 months. Investors continue to minimise their exposure to high-risk assets — such as crypto, tech stocks and others — in the wake of rising interest rates.
Experts are still bullish on Ethereum's long-term prospects despite conceding that the market may take a few years to recover fully. "While some of the corrections from the top may have simply shaken out the 'hot money', there is still a risk that a deteriorating macro environment opens the door for even deeper losses," a researcher for Seeking Alpha noted.
Terra's value continues to oscillate violently
The past week has had crypto enthusiasts fixated on the developments surrounding blockchain protocol Terra and its associated offerings: LUNA and UST. After losing 99.8% of its value over the past 7 days, Luna made a recovery of sorts only to crash again. After rising to a relative high of US$0.034 — up 600% from its all-time low of US$0.0049 — Luna is once again back to US$0.00023107.
The minor price spike was a result of Anchor, a protocol built atop Terra, inflating Luna's total supply to 6.9 trillion tokens. This resulted in the asset appreciating 100 times from its floor price before plunging again. The insane turbulence has resulted in Luna trading being halted on major exchanges such as Huobi and Binance, among several others.
UK court judgement refers to NFTs as "private property"
Last month, the UK's High Court of Justice issued a ruling that refers to NFTs as private property. However, the order noted that this private property status did not extend to the actual content underlying the NFT itself.
This lack of clarity suggests that the underlying property represented by the NFT is still governed in the UK by the same copyright laws as in the US.
Disclosure: The author owns a range of cryptocurrencies at the time of writing