Ethereum Price Predictions: What is the Investor Sentiment?

Image1

Following a series of difficulties that occurred in the aftermath of the price rally of March, the crypto market has begun consolidating its positions again to provide more reliable patterns for investors. Although the corrections are normal and even expected by market participants, there’s no denying the fact that their impact is predominantly negative, making room for further volatility and uncertainty for investors, the recovery has been sharper and much faster than in the past. The Ethereum price prediction most investors believe is the most realistic is the one that sees ETH go on an ascending path and continue to grow throughout the year.

This is in line with the predictions concerning the entire crypto environment, as the arrival of the exchange-traded funds in the Bitcoin world and the subsequent halving have permanently altered the ways in which prices evolve.

Bullish tendency

In spite of the reductions and corrections, Ethereum’s bullish tendency remains strong. This is not surprising and was, in fact, predicted by investors and analysts last year. Investor sentiment remains positive, as most are attracted to the market during this time and eager to add ETH to their list of holdings. However, since there are still so many changes occurring in the market, it is still vital for investors to remain aware of the risks and the possibility of losses. A reliable strategy is all the more relevant during times of steep fluctuations, as it becomes more difficult to guarantee consistent gains during these times.

33%

Ethereum’s value has more than doubled since September 2022, when it switched to a proof-of-stake protocol. Replacing proof-of-work with this alternative is said to have several benefits, including a reduced carbon footprint and better accessibility. Making crypto more sustainable has always been a challenge, especially since many potential investors were reluctant to join the ranks of blockchain training due to the impact coin minting has on the environment. However, when priced against Bitcoin as part of the ETH/BTC pair, ETH has been roughly 33% since the Merge.

The slump of ETH/BTC continued, and at the beginning of April, Ethereum recorded losses of about 9% during the span of a single month. The last time the pair was this low was in May 2021. The RSI went to forty-four, a staggering loss compared to its March 11th levels of eighty-five. This clearly indicates that Ethereum cannot be considered to be overbought.

Psychological levels

In the trading world, the idea of psychological levels refers to market price points, which are denoted by round numbers and whose purpose is to act as levels of resistance or support. At the moment, investors have their eyes set on the $3,200 mark, a price that would liquidate no less than $97 million worth in short positions. Moving slightly below to $3,170 would take the losses considerably further, to $329 million. These figures represent the numbers across all trading exchanges.

Image3

All these numbers clearly show that Ether has been underperforming so far this year, so what reason do investors have to be optimistic? On the one hand, there’s always room for improvement in crypto environments. Things are never stationary for long, and after a period of poorer performance, prices always climb back up. Moreover, it’s not all bad news, as although Bitcoin has advanced by up to 49% according to year-to-date metrics, Ether is also up 36%. While definitely not the ideal growth many investors were probably expecting to see, it is still considerable growth and sufficient reason to believe in the asset’s ability to have a strong rebound.

Purchasing

So, is now a good time to purchase Ethereum, or should you wait until market conditions are more promising? Since the crypto environment is so changeable, it is typically quite challenging to determine the best times for buying, selling or trading. It’s doubtful that you’ll be able to consistently identify the best moment for these activities and should become accustomed to a certain degree of volatility as a result. It is, after all, nothing but part of a trader’s life.

Nonetheless, most investors are convinced that a rally is in the making and that it is only a matter of time until the prices skyrocket. The halving has just happened, but as its effects become more visible, it is highly probable that the multi-year lows Ether is facing will swiftly become a thing of the past. As Ethereum gains better exposure and the engagement levels become more elevated, the price will receive a boost as well. There’s also the prospect of additional good news arriving from Hong Kong, as the approval of locally-based Ethereum and Bitcoin exchange-traded funds appears to be in the works.

Therefore, the current prices could be a stellar buying opportunity, as they are more affordable and easier to manage financially by most investors. When higher levels are achieved, it will become less sustainable for many to trade as often.

Catalyst

At the moment, the general consensus is that Ethereum is only one catalyst away from catching up with Bitcoin. This could come from an ETF approval, as well as from a different method of institutional adoption, as both have the power and potential to reverse any downswing trend. Apart from that, there are several other reasons why investors believe Ethereum is due for an imminent rally:

Image2

 

·The DApp volumes and associated protocol fees: Nonfungible token marketplaces typically don’t require hefty amounts of total value locked. Among these assets are games, Layer-2 bridges and social networking platforms. In the span of a single week, decentralized applications located on Ethereum reached nearly $30 billion, a 14,2% increase.

·ETF approval: An exchange-traded funds approval on the Ethereum market wouldn’t be priced according to the derivatives market. At the moment, the Ethereum annualized premium is around 13.5%, suggesting that investors are not taking ETFs for granted.

The current network activity shows that there’s certainly room for improvement for ETH and that it won’t be long until improvement schemes begin to yield results. If you’re an investor, remember that it is vital to have a comprehensive strategy that allows you to enjoy steady revenue.

Author

Skip to content