Ethereum is in big trouble, big investors showing interest but expert saying stay away

Crypto analysis (Ethereum):

Some data showing that big investors like whales, have been buying more Ethereum around this price range because they think its value might go up soon

 

 

Ethereum has been a popular choice for investors. But in recent time there have some mixed option about the future price of Ethereum between investors and market expert. Cowen suggest that Ethereum's future might face some challenges, especially concerning its price.

On Wednesday, the market was pretty calm while Ethereum stayed at around $3,000. Despite the overall quietness, there has been a notable surge in ETH derivatives volume during May, reaching nearly 60% higher compared to Bitcoin, as reported by QCP.

One potential reason for this uptick because people are expecting some big changes soon. As the Securities & Exchange Commission's (SEC) upcoming decision regarding Van Ecks' spot ETH ETF application, scheduled for May 23 playing a vital role on it. QCP thinks this might make the market a bit uncertain because some people think the SEC will say no to this kind of investment.

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Crypto analysis: Ethereum nears $4,000 amidst market rally

Despite the current sideways trading pattern observed in ETH price action, historical data points to the possibility of Ethereum gearing up for a bullish breakout. Over the past month, ETH has maintained a relatively tight range between $2,852 and $3,300. Should there be a slight bullish catalyst, Ethereum could potentially break out above the upper boundary of this range, signaling a sustained upward movement.

Some data also shows that big investors like whales, have been buying more Ethereum around this price range because they think its value might go up soon. If the price drops a bit, it could be a good time to buy for some people. But some analyst share negative option about the future of Ethereum. Cowen a cryptocurrency expert believes that if central banks tighten their monetary policies, it could spell trouble for Ethereum. It will happen when central banks make it harder to borrow money or introduce stricter rules, investors tend to shy away from riskier assets like cryptocurrencies. Cowen suggests that Ethereum's price against the US dollar (ETH/USD) might face further decline in the coming months. The Ethereum price relative to Bitcoin (ETH/BTC) is likely to keep dropping under most circumstances historically, ETH has often followed Bitcoin's price movements. When Bitcoin's price goes up significantly, it tends to draw more attention to the cryptocurrency market as a whole. This increased interest could potentially lead to an increase in Ethereum's price too.