Ethereum expert analysis: Why increased stability is a good sign
Over the course of the last 24 hours, Ether's value has risen by nearly 3%
- ETHs latest push seems to have come on the heels of US president Joe Biden announcing a new AU $1.25 trillion bipartisan infrastructure plan.
- Ether is currently showcasing monthly losses in excess of 25%.
- Experts believe that the coming few weeks could see ETH follow BTC's price trendline and showcase bullish action once again.
After flirting with the AU $2,500 threshold yesterday, Ether, the world's second largest cryptocurrency by total market capitalization, has started forging a recovery of sorts, peaking out a price of around AU %2,700, before showcasing a small correction. At press time, the premier altcoin is trading at AU $2,609.
To get a better overview of what potentially lies in store for Ethereum, Finder reached out to Jay Hao, CEO of popular cryptocurrency exchange OKEx. Straight off the bat, he pointed out that leading upto the crypto bloodbath that took place last month, Ether had already been severely outperforming BTC, even setting new all time high's — seemingly every other day. In this regard, he went on to add:
"While that momentum did help ETH preserve some gains despite the market dropping sharply, we recently saw the correlation between ETH and BTC increasing, which explains why ETH is back to following BTC's price trend. This shift is predominantly due to the market's changing sentiment towards the possibility of a continued bull run."
In terms of how Ether stands to perform in the mid-to-long term, Hao believes that the digital asset's fundamentals have continued to remain extremely strong, suggesting that as we move into an increasingly decentralized future, Ethereum will most likely remain the blockchain ecosystem that not only continues to expand at rapid pace but also houses some of the most popular DApps across the global crypto landscape.
After the Chinese government imposed a ban on cryptocurrency mining across its borders around a fortnight ago, the crypto market as a whole seems to have taken a massive hit. To put things into perspective, since the announcement, Ether's value has been sliding quite dramatically, slipping by over 15% over the past week alone.
Lastly, as per various reports, it is being said that Chinese authorities have already put a halt on a whopping 90% of its local cryptocurrency mining operations. Therefore it stands to reason that Ether may be faced with further liquidations down the road, however, only time will tell how things play out from here on end.
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Disclosure: The author owns a range of cryptocurrencies at the time of writing