- Ethereum’s price has been relatively muted since the correction from its yearly high of $2,132 more than three months ago.
- XRP has seized the spotlight in the crypto market, stealing the show from other digital currencies.
Ethereum, the second-largest cryptocurrency, has been in a slumber of late, maintaining a tranquil posture since its correction from the annual high of $2,132 over three months ago. The psychological significance of the $2,000 support level is clearly evident, with traders’ optimism or skepticism hinging on Ethereum’s battle with this price point.
Ethereum’s Modest Gains Amid BTC Rally
Like many other assets, Ethereum’s gains against Bitcoin have been modest, despite Bitcoin’s massive rally induced by BlackRock’s recent submission of a Bitcoin Spot ETF proposal. A meager 4.8% price surge compared to Bitcoin is hardly cause for celebration among traders. This lukewarm performance of Ethereum has seen the percentage of Ethereum-related discussions dropping to a 2023 low, mirroring the dip experienced in mid-May.
On the flip side, XRP, Ripple’s digital token, has seized the spotlight in the cryptoverse, overshadowing other digital currencies.
XRP Shines Amidst Ethereum’s Dormancy
Backtesting has revealed that altcoins often thrive when investors are distracted by other assets, and currently, XRP is the star of the show. One possible indicator of an impending price spike could be when investors start transacting more during losses than during gains. Presently, the ratio of on-chain transaction volume during profit versus loss still favors profit-taking but is not as dominant as before. If Ethereum slips a bit further, threatening the $1,700-$1,800 mark, panic selling might increase to justify purchases.
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Ethereum Investors Maintain a Steady Stance
Investor behavior is another aspect to watch. Short-term Ethereum investors who were active in the last 30 days have seen a marginal average return of -0.35%, essentially breaking even. However, long-term traders active over the past year have enjoyed an average return of +14.9%.
The majority of investors continue to hold their Ether in self-custody, with less than 7% of the coins being traded on exchanges, thus reducing the likelihood of a significant sell-off. This should be viewed as one of the strongest long-term indicators of faith in Ethereum, which experienced a somewhat disappointing halving in terms of price in September 2022.
Ethereum’s community is currently eerily quiet. However, it’s not uncommon to see good things happen when the community’s focus shifts towards other top market cap assets like XRP and Chainlink (LINK). Patience often pays off in this cryptoverse.
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