Ethereum price dips 5% overnight: Here’s what the experts are saying
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 past month, the total market cap of the crypto sector has dropped by a staggering 65%.
After seemingly having established strong support around the $2,600 – $2,800 range, Ethereum, the world’s second-largest crypto by market capitalization, seems to once again be losing value. Over the past month alone, ETH has lost more nearly 40% of its value. At press time, the altcoin is trading at $2,414.
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. Since the start of 2021, the altcoin has exhibited gains of more than 70% as compared to Bitcoin’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.
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 every day. 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.
Disclosure: The author owns a range of cryptocurrencies at the time of writing