Ethereum may become the market leader after the crypto winter — Bloomberg expert

Crypto winter will soon be over, Bloomberg analysts say. In addition, there is a chance that Ethereum will take the lead in the next bull run, but so far, the value of the token does not even exceed $1,300, and there is a reason for that. Obviously, with such figures, ETH will definitely not make it to the first line. 

Current Ethereum price 

Currently, the coin is stable. The rate has not yet recovered from the FTX crash, so it is drifting around the $1,300 mark. At the time of writing, the token is trading at $1,228, with a market capitalization of $150.25B. In the last hour, ETH has fallen in value by 0.07%, in the last 24 hours by 2.18%, and in the last week by 3.07%. The figures are not critical, especially considering the fact that previously the coin showed growth.

Because of the crisis, Ethereum could have fallen even lower, but the whales stood up to protect it and kept the value at $1,200. The big players began to actively buy the token to prevent it from going under, just like they did in 2020. These tactics led to a 50% rise in the altcoin’s value. However, given the current state of the market, it is unlikely that the coin will follow the same scenario. 

Why can’t ETH get above $1,300? 

So far, it all comes down to the fact that Ethereum will not be able to hold on to the $1,200 mark. In one case, traders are delighted that the token is up from its November low of $1,070, but on the other hand, they are stressed by the current situation, where the token has been falling for the past seven days. 

One reason for the drop could be due to a flood of negative news about a bear market, which could have significantly affected investor sentiment. For this, we should look at derivatives a security whose value is derived from the value and characteristics of another security ETH.

So, according to Cointelegraph, derivatives traders are still bearish. The indicator is away from 0% and 4%, but that doesn’t mean it will start moving up anytime soon. To understand what will happen to the coin next, experts advise monitoring the markets of options on Ethereum; this is done to exclude external factors, which are typical for the futures instrument. 

“The 25% delta skew is a telling sign when market makers and arbitrage desks are overcharging for upside or downside protection,” the experts say.

 Ethereum for the market leader? 

Bloomberg commodity strategist Mike McGlone believes that the end of the crypto winter will come soon. According to him, not as soon as desired, but there will be a reversal of the market, after which its active growth will begin. The expert also believes that the cryptocurrency world will not be the same after the crisis, in particular, Ethereum will become the market leader in the new bull run. Mainly due to the fact that ETH “has hard rudiments regarding smart contracts.” 

Earlier, we were all waiting for an event called The Merge, after which everyone thought the value of the token would soar to the Moon, but that, as we remember, didn’t happen. That’s why there is a chance that the technical component of the token will not play the main role in its growth. We’d like to believe that, but we better not get our hopes up. 

Mike McGlone also backed up his opinion with the fact that now the token is worth 12 times more than, for example, in 2019, and it still has something to show. However, the expert also does not rule out that ETH will still fall in price below $1,000 in the near future, nevertheless, there will still be a jump after that.

How can I make money on this?

So, if the bottom hasn’t been reached yet and the fall will continue, it makes sense to catch it and buy it until it rebounds. Popular trader Lady of Crypto thinks ETH will stop at $700, so she plans to actively buy it before that time.

I won’t buy $ETH heavily until $700. You?

— Lady of Crypto (@LadyofCrypto1) December 6, 2022

However, you should not blindly believe the suggestions of market participants, so follow the situation on the market yourself. And we will help you to stay informed about all the important events. Read buidlbee.com.