Discover why the crypto market feels stagnant and explore catalysts for Ethereum and Bitcoin. New stablecoins and ETFs could shape the future.
In this post, we will explore the possible reasons behind the relatively dull state of the crypto market and delve into key aspects that could impact catalysts in both Ethereum and Bitcoin’s trajectories, such as the launch of new stablecoins and ETFs. However, it is important to note that while these catalysts hold promise, their realization might be uncertain and subject to regulatory challenges.
As we await these potential game-changers, understanding the current market signals and maintaining cautious optimism becomes crucial for any crypto enthusiast or investor.
Ethereum Price Analysis and Key Levels
Follow CryptoMode on Twitter, Youtube and TikTok for news updates! At the time of writing, Ethereum’s price is trading around $1796. The candlesticks form just below the 50-day EMA, while candles are still above the 100-day EMA, suggesting short-term bearishness. Interestingly, the Bollinger Bands lacks volatility and directions on the daily chart. RSI is also around 35, which also suggests selling pressure.
Based on the daily chart analysis, $2000 is the resistance, and $1700 is the support for the long term. If it breaks the support of $1700, then ETH will be long-term bearish, so you should consider other aspects to find momentum in Ethereum.
Selling Pressure on Bitcoin and Awaited Catalysts for Momentum Shift
Bitcoin price action also looks the same while writing this post. BTC/USD is trading around $28,500 and showing selling pressure because candlesticks are forming below the 100 EMA. While Bollinger Bands and RSI are showing a lack of strength for the short term, Bitcoin enthusiasts are waiting for catalysts to change the momentum.
Factors Behind the Dull Crypto Market
Crypto fans and investors are used to the wild ups and downs in the market. However, things seem a bit boring lately. Let’s see why the excitement is low.
Supply of New Stablecoins
Stablecoins are like anchors in the crypto world, connecting regular money with digital coins. Tether, USD Coin, and new Ethereum-bsed PYUSD from PayPal help keep the crypto market stable. They are tied to the US dollar, so you cannot find much volatility in the price.
More people will use stablecoins if the rules become clearer. It could make stablecoins grow a lot – maybe even up to $2.8 trillion in five years! It could also bring a lot of money into the crypto world.
Crypto enthusiasts are excited about the positive development of ETH coin, which provides a platform for such stablecoin. Ethereum projections show that it is expected to see a significant price increase in the next two years, with some analysts predicting that the price could even reach $6000 mark. By investing in Ethereum at such a low price, you can expect around 400% gain in the next few years.
A New Crypto Cycle
To make the crypto market grow, we need a new cycle. It means new ways to get money into the market. One way is to turn regular things like assets into digital tokens. Experts predict almost $2 trillion of regular inflow in five years. It would give people new chances to invest and be part of a bull market.
Promise of Layer-2 Chains
The growth of layer-2 blockchains, built on established networks like Ethereum, presents another promising catalyst for the crypto market. These layer-2 solutions address scalability issues and offer new avenues for user adoption. As new market infrastructure becomes tokenized, it paves the way for increased scalability and enhanced user engagement.
The potential of native crypto tokenization cannot be underestimated. While not all tokens succeed, some of them will create invaluable infrastructure and capital that shape the future of the crypto ecosystem. These developments may lead to a capital multiplier effect, driving further growth and innovation within the market.
Spot Bitcoin ETFs
One of the most anticipated catalysts for the crypto market is spot Bitcoin exchange-traded funds (ETFs) approval. The possibility of these ETFs gaining approval and entering the market has generated excitement among both retail and institutional investors. Such ETFs would allow investors to hold actual Bitcoin rather than derivative products like futures.
Although the market experienced a boost when BlackRock filed for a Spot Bitcoin ETF, the true potential lies in the green signal of the SEC’s approval of such funds. If these ETFs are given the green light, it could lead to an influx of investors seeking exposure to Bitcoin, potentially driving up demand and prices.
Bernstein predicts that the Spot Bitcoin ETF market could eventually represent around 10% of Bitcoin’s market cap range within the next 2-3 years. Bitcoin forecast also projects positive momentum for the upcoming years, potentially crossing the psychological $100K mark in the next three years.
Conclusion
While these potential catalysts hold promise, the timing of these developments is uncertain. The excitement around spot Bitcoin ETFs and Ethereum future ETFs could be tempered by regulatory hurdles, as evidenced by recent delays in decisions by the SEC.
Investors and analysts eagerly await catalysts that could reignite the crypto market’s energy and excitement. Until then, the temporary low volatile situation might be silence before a storm.
None of the information on this website is investment or financial advice. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website.
