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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Is This The Perfect Moment To Buy Ethereum? Top Analyst Weighs in

Reynaldo Marquez
Reynaldo Marquez
4 years ago
2 mins read
Ethereum ETH ETHUSD22

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The market has been struck by the bears, but Ethereum (ETH) has managed to maintain side movement in the 24-hour chart. Trading at $2.404,36, ETH moved towards a new all-time high before the crash. Investors looking for a good entry for a long position could benefit from the current dip.

Ethereum ETH ETHUSD
ETH retaking bullish momentum in the daily chart. Source: ETHUSD Tradingview

Analyst Ben Lilly has been keeping a close eye on the trading pair ETH/USD. Predicting the recent bullish price action, the analyst claimed increased volatility for the pair as it moved near a low point on its gamma curve.

Used as a metric to measure how fast the price of an asset can change in relation with each one-point increase, the gamma on this trading pair also hinted at a “more explosive” price action to the upside and further volatility towards the weekend, as Ben Lily said:

(…) back at max negative gamma, about $1.5mn per $10 moves. (Volatility) still high until the weekly close tomorrow.

Ethereum ETH ETHUSD
Source: Ben Lilly

At the time of writing, Bitcoin’s (BTC) price is sinking on the lower and high timeframes. On the other hand, ETH holds key support at the aforementioned levels. This price action coincides with a drop in Bitcoin’s dominance to similar levels not seen since the 2017 bull market.

During this period, “altcoins went bananas”, as the analyst stated while sharing the chart below showing two-moment when ETH’s price has exceeded “in expectations”. Ben Lilly added:

The initial break higher resulted in nearly 800% returns while the second, over 400%. These types of “effects” are what I consider breaking the norm (…) . And for now I see the potential of one altseason beginning to take form.

Ethereum ETH ETHUSD
Source: Ben Lilly

Ethereum’s Most Bullish Factor

Two additional events could operate as catalyzers for ETH’s price. As the analyst said in a previous analysis, at the end of April investment firm Grayscale will begin acquiring assets for its product.

At first, this could have favored Bitcoin’s price as the Grayscale Bitcoin Trust (GBTC) represented much of the demand for this cryptocurrency in the past months. The situation now could be different, as Ben Lilly stated:

One thing I’d like to add is the flow of capital from GBTC effect might not re-enter. But nter ETHE or the other trusts. The other Trusts have less circulating supply and creating premiums in those vehicles is less capital intensive. Grayscale Effect 2.0 – Altcoin version?

However, ETH’s price biggest catalyst could be implemented with Hard Fork London and EIP-1559. To be deployed in July, this update will change Ethereum’s fee model and will make ETH an asset with deflationary pressure and a supply in continuous reduction. Co-Founder of Ethhub.eth, Anthony Sassano, explained it as follow:

Once EIP-1559 is implemented, every single transaction on Ethereum will burn $ETH. Every liquidation, every ETH transfer, every layer 2 proof, every DEX trade, and even every rug pull – it doesn’t matter what the transaction is – ETH will continue being burned. Forever.

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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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