While Bitcoin and altcoins have been experiencing declines in recent days, Ethereum (ETH ($2,629.37)) suffered one of the biggest losses.
Institutional investors, who saw this decline in ETH as a buying opportunity, increased their purchases, while CryptoQuant analyst stated that ETH was extremely undervalued and that a possible price recovery was imminent.
Sharing four signals that Ethereum could experience a potential recovery, the analyst listed them as follows:
“1. The current unrealized price of ETH is $2,200, below the market price of $2,600. This indicates that Ethereum is severely undervalued.
2. The amount of ETH held by long-term investors is increasing, which helps stabilize the market.
3. Selling pressure has decreased in the futures market, indicating that buying interest has strengthened.
4. Large institutional investors like BlackRock and Cumberland have been increasing their ETH holdings during this decline.”
Stating that these four situations are bullish signals for ETH, the analyst said that when these factors come together, ETH may experience sideways movements due to macroeconomic conditions, but the potential for an upward trend in the near future is strong.
Ethereum continues to trade at $2,630 at the time of writing.
*This is not investment advice.
Continue Reading: Ethereum’s Down Period Is Ending! CryptoQuant Analyst Lists Four Reasons for ETH to Be Bullish!
