The collapse of the cryptocurrency market has kept many investors and experts in a skeptical mood. This stemmed from a drop in liquidity and inflation that became increasingly strong in 2022. As a result, several digital tokens, including BTC and ETH, have consistently seen price declines from their all-time highs.
Investors who jumped into the crypto ecosystem at the end of 2021 are currently under water due to the huge price drop. In the meantime, I can only hope that things get better sooner rather than later.
The crypto crisis is coming to an end
Meanwhile, some crypto analysts are revealing their thoughts on the likely outcome of the crypto market in the near future. A good example here is Mike McGlone, a commodity strategist at Bloomberg.
He stated that while the market turnaround may take some time, the worst of the downturn is approaching. According to his analysis, Ethereum will lead the next bull in the cryptocurrency market. He linked his reasons to the fact that ETH has strict rudiments on smart contracts.
In the Stansberry Research Interview, McGlone cited that Ethereum still has a good foundation that investors should consider. That is, the current value of the token compared to its value three years ago.
He revealed that Ethereum is currently trading at a price 12 times higher than in 2019. Furthermore, the current price level of the token is somewhat close to a strong support level.
However, he added that many digital tokens do not hold much hope for investors. He also believes that the token has high demand and limited supply in the crypto market.
McGlone’s thoughts on the ETH market
According to McGlone, crypto investors and companies will recover from this dilemma in a short time. They could still be positive regardless of the Fed chair’s intentions to further tighten measures. Although such decisions have a negative effect on the market, it is best to keep a positive mindset.
He encourages digital currency investors and companies to keep an eye on Ethereum’s price. Ethereum is currently trading at $1269. However, prior to the onset of the global pandemic in late 2019, ETH was trading at approximately $100.
Ethereum price is trading sideways l ETHUSDT on Tradingview.com
Furthermore, a strong support level holds around the $1,000 price. McGlone believes the price could fall slightly below this level. However, he expects a significant increase in the price of the token soon after.
Furthermore, investors can latch on to the fact that Bitcoin and Ethereum have defined supplies. This fact maintains a high demand for tokens and their increasing use, which can open up many positive opportunities.
In the case of commodities, crypto companies and investors can only hope for a beneficial change, McGlone concluded.
Featured image from Pixabay, charts from Tradingview.com