Regarded as the “King of altcoins,” Ethereum has failed to live up to its expectations in recent weeks. Ethereum, along with the crypto market, has suffered massive attacks from the bears. The token is still battling to recover from the loss towards the end of May.
No Support for Ethereum
At the time of writing, Ethereum is trading at $1,982 after falling below the $2,000 price mark. The $2K is a crucial support point that will help in the July 2021 rally. However, the actual support zone for ETH is set at $2,321.
A bounce from this level would trigger an upward price trend towards $3K.
Meanwhile, the second-largest cryptocurrency is still far from this modest price outlook since last month’s panic. The crypto market was in panic mode over the past month as investors moved out en masse over fears.
Toward the end of April, there was no improvement, which made Ethereum holders sell their assets. The sell-off was so large that investors sold more than one million ETH within a month.
At press time, the market valuation for Ethereum was $1.9 billion. This is the largest sellout that happened on Ethereum this year.
Moreover, a handful of long-term holders of ETH, albeit not the majority, sold off their holdings. These holdings have been in their wallets for over a year. Therefore, this has contributed to destabilizing the ETH in the process.
On a positive note, the numerous setbacks usher in some remarkable wind of change. For the first time in recent months, Ethereum is now gaining the confidence and trust of institutional investors. Even though the investors still had a beef against ETH at the start of the year.
Things are beginning to take shape for the King of altcoins as $300K worth of ETH was withdrawn by investors. This is a big improvement from the previous $100 million, which led to negative net flows for Ethereum at $239 million.
However, Bitcoin bore the brunt of the market decline, with the largest cryptocurrency recording $153.5 million in outflows. The flagship digital currency continues to shed more of its value with each passing day.
Bitcoin is still attempting to recover from its all-time high as the current market realities bite harder for the BTC. The token continues to decline with a periodic price uptrend, which often appears to be brief and steady.
The collapse of the Terra ecosystem has put whatever recovery Bitcoin has aside, with more outflows coming up. Moreover, the crypto market has taken a hit from the recent meltdown of Terra LUNA and Terra UST stablecoins.
Industry experts believe that Bitcoin’s inability to take the lead in the market is largely to blame. As the largest cryptocurrency in market capitalization, Bitcoin is expected to take the driving seat.
In addition, Ethereum has also been largely underwhelming for the majority of the year in terms of price performance. Meanwhile, the latest positive performance might be the trigger for future performance.