Known as an influential analyst in the cryptocurrency markets, DonAlt offered an important perspective on the future of Ethereum. According to him, the performance of Ethereum (ETH) in the short and medium term may remain relatively low compared to the rise of other altcoins. DonAlt supports his view by addressing several factors that limit ETH’s potential.
DonAlt first analyzed the price performance of Ethereum. When the prices of other altcoins fall, Ethereum also falls, but less than others stated. This could be a short-term silver lining for Ethereum holders, as the depreciation may be less in dollar terms. However, he thinks this is only a temporary relief.
DonAlt claims that Ethereum must go through a certain process in order to rise to the leadership position again.
“Everything fell. ETH also fell, but ETH fell less. ETH holders, your time has come, rejoice (decrease in terms of USD, increase in terms of other coins). I think this is the only way for ETH to rise for a while. But if everything falls hard, ETH may outperform. Once things get better, others will largely eclipse him until we get a big capitulation on ETH, then he will probably start leading again.”
NEWS CONTINUES BELOW
DonAlt has been bearish on ETH since September of last year and began tracking the leading altcoin’s performance against Bitcoin (ETH/BTC) when it was trading at 0.06 BTC. Since then, the trading pair has lost approximately 20% of its value and is currently trading at 0.0487 BTC ($3,382).
In addition, DonAlt also examined the leading cryptocurrency Bitcoin itself. The analyst believes that BTC’s current consolidation is paving the way for the crypto king to reach new all-time highs.
“Lower time frames look much better above $68,300. They look terrible for under $65,000. In my opinion, it’s kind of a situation where it’s not clear which option is better. The longer the interval, the better for the bulls; Sideways digesting the movement from $30,000 to $60,000 will open the way to above $80,000.”
At the time of writing this article, Bitcoin is trading at $69,410, while the leading altcoin ETH is at $3,387.
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