In the ever-evolving world of cryptocurrencies, Ethereum (ETH) continues to hold its position as the second-largest digital asset by market capitalization. Although currently trading below $1,900 per unit, industry experts from Santiment foresee a bullish upturn on the horizon, with ETH potentially clawing its way back to the coveted $2,000 territory in the coming month.
Santiment believes Ethereum could break resistance soon
Despite recent lackluster market performance, Santiment suggests that Ethereum is reveling in its “under the radar” status, often benefiting from patient investors who see long-term potential in the asset. Much like Bitcoin (BTC), ETH prices have been rangebound between $1,830 and $2,000 per unit since the end of June. The digital asset previously reached $2,130 in April 2023 but faced resistance and retraced its steps.
As of July 22, 2023, ETH has been trading between $1,885 and $1,905 per unit, witnessing a 2.7% loss over the past seven days. Santiment’s analysts, however, maintain optimism in their latest report, projecting a potential climb back above the $2,000 range for Ethereum in the near future.
The current focus on other leading assets, such as XRP and Chainlink, may be contributing to Ethereum’s “quiet” stance at $1,895. Santiment suggests that certain altcoins tend to perform well during times when traders are attracted to these “shiny assets” in the market. However, the analysts emphasize that this distraction is only temporary, and Ethereum’s underlying metrics point to a strong recovery.
One key factor contributing to the positive outlook for ETH is the recent rise in XRP’s price. Santiment highlights that during such times, altcoins, including Ethereum, tend to flourish as traders shift their attention. Furthermore, Santiment points to a potential upcoming price bottom for Ethereum, which could attract panic sellers looking to justify their buying decisions.
Positive indicators fuel confidence in Ethereum’s growth
Address activity in the Ethereum network is also seen as a positive sign. The majority of ether tokens are overwhelmingly held in self-custody, with less than 7% of coins residing on exchanges. This low exchange balance indicates a lower likelihood of significant sell-offs, which bolsters confidence in the asset’s long-term potential.
Santiment’s analysts highlight the atypical calm within the Ethereum community, suggesting that this phenomenon often occurs when the spotlight shifts to other leading assets like XRP and Chainlink. They reiterate the importance of patience when it comes to investing in Ethereum, as history has shown that such an approach is often rewarded in the crypto market.
Considering the potential factors that may drive Ethereum’s resurgence, Santiment envisions a scenario where ETH could make a strong move to surpass the $2,000 threshold in August or even earlier. While the cryptocurrency market remains inherently volatile, the underlying fundamentals of Ethereum seem to provide a solid foundation for growth. As the cryptocurrency sector continues to evolve and capture the attention of investors worldwide, Ethereum remains a prominent player.
With the backing of an active and dedicated community, along with the continuous development of its ecosystem, Ethereum’s future holds promise, bolstered by the potential resurgence and a target to reclaim the $2,000 price level. Investors and enthusiasts alike are eagerly keeping an eye on the digital asset, eagerly awaiting the next phase of Ethereum’s journey in the crypto space.
