Technical indicators, the current price movement indicate that Ethereum is in the pre-phase of entering a new market cycle. This was stated by the famous investor Su Zhu. What is the reason for this trend and whether it will affect the price reduction Ethereum will be considered in this article.
What signs indicate the start of a new market cycle for Ethereum?
Analyzing the indicators over the past few weeks, cryptanalysts agreed that Ethereum and other ripto assets were under the control of a side trend. Despite the recent breakthrough of the milestone above $200, some experts are sure that Ethereum does not yet have enough technical strength to continue its growth.
Su Zhu, CEO of Three Arrows Capital, is convinced that Ethereum has entered a new market cycle. This is due to the increase in the popularization of decentralized assets in the financial market. Despite the collapse in March, cryptocurrency received a surge of interest among investors and those who are just about to enter the financial market.
Interest in buying decentralized assets, including Ethereum, continues to grow amid statements about the second wave of the spread of the pandemic and the threats of global inflation. For the crypto industry, this could be the beginning of a new phase of development.
Su Zhu noted:
“Ethereum has entered a new market cycle. This is due to the increase in the value of the crypto asset in 2020 against the backdrop of changes in the macroeconomic situation in the world. ”
Ethereum lacks technical strength to keep bullish trend
Over the past two weeks, there has been a growth in price consolidation between Ethereum and Bitcoin. This trend continues to prevail and may affect the future course of Ethereum. Although the crypto asset has improved its ecosystem and market performance, many analysts believe that Ethereum will not be able to maintain an uptrend.
Venture investor Chris Burniske predicts that Ethereum could return to near lower support levels in the coming days. He noted:
“Ethereum does not yet have enough technical forces to continue the upward price movement. It is possible that soon we will see how the crypto asset will return to the market indicators of the previous month. ”
Thus, it is likely that the consolidation of Ethereum with Bitcoin continues to be strong. According to investors, the current week is crucial for Ethereum and will be able to show which trends will prevail shortly: bearish or bullish.
This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose.