Ethereum’s neutral dynamics are worrying retail investors who are shifting to BTC. But institutionalists are calm.
According to Michaël van de Poppe, a popular trader on the Amsterdam Stock Exchange, Ethereum does an excellent job of dealing with price fluctuations in the market. Now that the attention of the crypto community is focused on bitcoin, ETH has stabilized in the $2300-2400 range. Energy is being accumulated for explosive growth in July. Van de Poppe conducted a technical analysis and states:
– Ethereum resting on that support between $2,300-$2,400 and looking great on the daily candle. The market isn’t that bad.
The expert has defined the possible resistance levels for ETH as $2,900, $3,275, and $3,704. However, he does not specify when the leading altcoin will reach these levels. Obviously, the movement will start in July, closer to the date of the London update. The share of Ethereum is more than 18%, over the past month it has changed slightly in the range of 18% -20%. At the same time, Bitcoin Dominance has changed quite a lot, from 39% to 47%. This means that big investors are not selling ETH and Ethereum retains its market share. The big selloff in Ethereum came only after the decline from the all-time high (ATH) of $4362 on May 12.
The trading volume on May 20 exceeded $93 billion, now it has decreased by 3.5 times to $23 billion and has been at this level since the beginning of June. According to experts, retail investors were selling their ETH, due to panic during the market fall. Long-term big investors held their ETH, and some of them also bought ETH at the lows. This was the case, for example, on May 24, when the trading volume rose to $61 billion after the price of ETH dropped below $2,000.
Why are large investors confident about the good prospects for ETH? Despite the fact that Ethereum was not created as a cryptocurrency, but only as a platform for smart contracts, its internal cryptocurrency turned out to be attractive for investments due to the fact that it is smart contracts that represent most of the crypto industry usefulness.
According to billionaire and venture capitalist Tim Draper, cryptocurrencies are already changing critical areas such as finance, insurance, government, and healthcare. This is primarily about storing data in the blockchain. Now artificial intelligence is involved, which operates on data using smart contracts. Therefore, platforms for smart contracts will be more and more in demand and their internal cryptocurrencies will be less volatile. Ethereum remains a better platform for smart contracts despite the appearance of several competitors such as Cardano (ADA), Polkadot (DOT), Solana (SOL), and others.