ETH, the second-largest cryptocurrency in the world, has solid fundamentals but has been performing poorly in the market. Hal Press, the founder of North Rock LP, expressed his view on this issue on Twitter, citing the “Shanghai overhang” as the cause of Ethereum’s lack of success.
On the other hand, Ari Paul, the Chief Investment Officer of BlockTower Capital, had a different opinion from Press. Paul argued that Ethereum’s steady performance over the past year was the reason for its poor performance. In a tweet, he stated that since ETH never “capitulated,” it would not perform as well as other cryptocurrencies that experienced a bounce from their lows.
Paul remarked that the flow of fresh funds into the cryptocurrency market could be more manageable, posing a challenge for major players such as Ethereum to register significant price gains. Small crypto market caps see big value swings due to market rotations; larger ones are more stable.
Press acknowledged the validity of Paul’s observations but contended that Ethereum’s performance was being benchmarked against Bitcoin, a cryptocurrency with an even higher market capitalization. ETHBTC ratio beta coefficient drops during a bullish market signals real factor,” he noted.
Support & Resistance Levels: Where ETH Stands Now & What’s Next
During the conversation, a participant in the community asserts that Ethereum’s poor performance might be due to the US government’s crackdown on stablecoins. Journalists focused on the problem that other cryptocurrencies had already scored higher than Ethereum before making any stablecoin news public.
According to another group member, institutional investors such as Tardfi buy Bitcoin due to regulatory requirements, while crypto enthusiasts invest in the most promising altcoins for short-term gains. This dynamic could be another factor impacting Ethereum’s underwhelming performance.
According to CoinMarketCap’s report, ETH has increased by 1.77% over the past 24 hours and is presently valued at $1,655.90. Despite generating a 39% profit since the start of 2023, the coin remains distinctive due to its undervaluation. Coin’s market cap at $200B, reclaimed. The $1.660 support level attracts bullish activity.
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ETH encounters opposition around the $1,665 and $1,680 levels while finding initial backing near the $1,640 level. If the price drops below $1,600, it may decline toward the $1,565 support level. Any additional losses could prompt a test of the $1,500 level, which would be distinct and unparalleled.
The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing
