Since July 14, 2022, ETH has been demonstrating strong growth — the asset has risen by more than 80% during this time. What are the reasons for this rise, and how is the largest altcoin likely to perform in the near future? We asked experts to share their opinions.
Aaron Chomsky, Head of the Investment Department at ICB Fund, expressed his opinion to CoinsPaid Media:
“In order to understand what’s happening in the market, you need to look at the overall picture, not the dynamics of quotations of the last few weeks. The cryptocurrency market has been going through a full bearish trend since fall, and there are no signs of it ending any time soon. That’s why we shouldn’t be overly optimistic about a slight rebound within the global downtrend.
The chart shows a well-defined channel with a low starting point on June 18 and parallel boundaries. At the moment, ETH managed not only to leave the upper boundary but also to return, which indicates a further move toward the lower boundary and the subsequent price exit from the channel toward $500.
In the crypto market, a certain token can rise amid a general decline, but such dissonance can’t last for a long time. It’ll eventually catch up with its peers, which fell lower. The same goes for ETH: it has gained more than BTC, for example, which means it’ll fall even more resoundingly. The nearest target for BTC is $19,700, while ETH aims to reach $1,080.
Now isn’t the best time for active purchases: dollar funding is becoming more expensive, and there’s no appetite for risk, so investors prefer to hold dollars and stablecoins. It’ll take an improvement in overall market sentiment for the rally to resume, and that may not happen until 2023.”
According to Vincent Pellizzari, Head of Trading at CoinsPaid, ETH is in the spotlight right now:
“Over these last couple of weeks, ETH has been stealing the spotlight from the crypto majors. Indeed, it has bounced strongly after dipping to $880 in June. Since then, ETH has been up more than 90%, trading above $1,700 at the time of writing. There are multiple drivers behind such a move. Aside from so-called FOMO, there’s a fundamental macro factor — the market is currently discounting expectations of a successful Merge in September.
For now, Ethereum is undergoing the last phase of testing, during which the Goerli testnet will merge with the Prater coordination mechanism. Only then, if proven successful, the final Merge will happen. Is it too late to join the party? Well, not really, as the end of The Merge phase would pave the way for more innovations on the Ethereum blockchain. For example, the network would allow 100,000 transactions per second at The Surge stage.
It is tough to place a target on the price, but one thing seems to be almost certain: within this month, ETH will surely outperform the king of crypto, BTC, in terms of growth dynamics.”
Evgeny Tarasov, News Editor at CoinsPaid Media, also shared his thoughts on ETH’s short-term prospects:
“The trend changed almost immediately after the developers announced the estimated date of the final Merge — September 19. Within just a few days, 130 new whales with a fortune from 1,000 to 100,000 ETH appeared in the network. After that, Vitalik Buterin made several statements, each of which “pushed” ETH upwards. The date of Goerli’s latest test merger with the main blockchain was announced. Some interesting news about Ethereum-based projects kept coming up. All of this caused optimism among market participants, and regular updates on the ETH rally only contribute to the excitement and reinforce the asset’s positive market dynamics. This flywheel is on, and it seems that Ethereum is the crypto market’s flagship at this particular moment.
Macroeconomic factors aren’t pleasing, international relations go into a steep dive, but capital keeps looking for a use for itself. And now, Coinbase Prime has added the Ethereum staking option for institutional clients in the U.S., analysts record an active inflow of institutional capital into financial instruments based on ETH, and reputable crypto experts almost unanimously predict a bright future for Ethereum. Amid this background, all the negative forecasts about “weak support” at certain levels, bearish patterns of technical analysis, and other signals of a potential drop in ETH quotations don’t justify themselves.
So, the current rally has no preconditions to stop yet. This is the purest form of FOMO — the positive informational background pushes market participants to the most attractive asset. We must strike while the iron’s hot! If the merge between Goerli and Prater is successful, we can expect positive ETH growth right up until late September. The only question is whether market participants will have enough optimism to keep the bullish trend. Will there be any black swans in the form of full-scale hostilities in the Taiwan Strait, the Balkans, or the Middle East, the announcement by the WHO of the monkeypox pandemic, or even a sudden report by the World Bank or the IMF stating the fact that the global recession has already begun? Does any of this seem so unbelievable to you today?”
