Time is running out for Ethereum (ETH): Will it rise?
Bitcoin, which has been hovering above $90,000 for a few days, continues to give confidence to the crypto market. However, ETH's weak course has begun to upset altcoin investors. Despite BTC's peaks being renewed every day, ETH has not even exceeded $3,500 yet.
According to research conducted by crypto analysis platform Amberdata, there is a 10 percent probability that ETH will exceed $4,000 in the short term. While investors expect Bitcoin to exceed $100,000 and make new highs, they predict that $ETH will continue to lag behind. According to Amberdata, the probability that the price will rise above $4,000 before the December 27 options expire is evaluated as only 10 percent.
According to the company, weak economic fundamentals underlie this bad outlook for ETH. Greg Magadini, Director of Derivatives at Amberdata, said, “ETH is facing an inflationary supply due to the intense trading in Layer-2s. This is suppressing the ETH price.”
In addition, the data from spot ETFs does not give much hope for Ethereum. Although things are going well on the Bitcoin side, net inflows into Ethereum are currently insufficient for a volume increase. If this situation reverses, the price exceeds $3500, or BTC dominance decreases, $ETH can be expected to rise. The critical level will be $4000. Weekly closes above this level may pave the way for ATH.