The altcoins and Bitcoin market continues its decline, leaving investors grappling with diminishing returns. While initial optimism fuels the buy-and-hold strategy, analyst Michael van de Pop warns of potential turbulence ahead, especially for Ethereum (ETH).
The analyst made a statement for altcoins
Van de Poppe’s analysis paints a worrying picture for Ethereum in the near future. He predicts further price declines, with ETH potentially dropping to the $2,500 to $2,750 range. This bleak outlook aligns with overall market sentiment, which is heavily influenced by two key factors: uncertain regulations and broader macroeconomic forces.
Over the past week, Ethereum has been on a downward trend, losing around 6% of its value and falling below the $2,910 level. This bearish trend points to a more obvious problem: the delay in approval of the long-awaited Ethereum spot exchange-traded fund (ETF). The Securities and Exchange Commission (SEC) has taken a more cautious approach towards Ethereum ETFs compared to Bitcoin ETFs. This hesitancy translates into regulatory uncertainty, further weakening investor confidence. Van de Pop believes this delay could worsen Ethereum’s woes and push the price down in the coming weeks.
Decrease in BTC/ETH parity
Adding to Ethereum’s struggles is its poor performance against Bitcoin. The steady decline of the ETH/BTC ratio reveals Ethereum’s difficulty in keeping up with the dominant cryptocurrency. Van de Pop predicts this trend will continue, highlighting a persistent challenge for Ethereum.
But there is a silver lining amidst this pessimism. Despite the current setbacks, van de Pop remains optimistic about a possible market shift following the ETF delay. He suggests that this shift could benefit altcoins in the third quarter of 2024 and provide opportunities for portfolio diversification and growth.
Consolidation expectation in Bitcoin
On the other hand, Bitcoin seems ready to enter a consolidation phase. Van de Pop predicts that Bitcoin will likely trade within a defined price range over the next 4-6 months. Historically, Bitcoin has tended to enter sideways markets following halving events, potentially signaling a period of accumulation. This trend, observed in previous halving cycles, encourages investors to buy Bitcoin during price stability in anticipation of future price increases.
While short-term corrections dominate the current landscape, analysts such as Michael van de Pop emphasize the cyclical nature of cryptocurrency markets. Despite the current downward trend, they predict an upward trend in the long run. This underlying optimism underscores the importance of a strategic approach in which investors navigate market fluctuations and position themselves for potential future gains.
To be informed about the latest developments, follow us twitter‘in, Facebookin And InstagramFollow on and Telegram And YouTube Join our channel!