Trader and analyst Roman has recently made a bold prediction regarding the future of the ETH price. According to Roman, investors should lower their short-term expectations for Ethereum. He mentioned in an interview with Hall of Flame that he doesn’t foresee Ethereum performing well in the coming months. This prediction comes at a time when the hype around Spot Ethereum ETFs has decreased, leading to significant outflows from these funds.
Roman believes that Ethereum’s fate is closely tied to that of Bitcoin. As Bitcoin continues to dominate the market and absorb a majority of the liquidity, altcoins like Ethereum are left trading sideways. Roman suggests that Ethereum will only experience a parabolic rally when traders start moving their capital from Bitcoin into altcoins. He specifically mentions that Ethereum is likely to lead this pack of altcoins once this shift happens. However, the analyst pointed out that this shift may only occur when traders believe Bitcoin has reached or is near its market peak.
Roman draws parallels between the current situation and what happened in 2020. During that time, Ethereum struggled to perform well until Bitcoin reached an all-time high of $40,000. Ethereum was down 80% from its own all-time high while Bitcoin continued to break new highs. Similarly, in the current scenario, Bitcoin has hit a new all-time high while Ethereum is down over 33% from its peak of $4,890.
The analyst predicts that Ethereum will experience a resurgence when Bitcoin starts to undergo a significant price correction. Roman suggests that once Bitcoin traders begin taking profits and transitioning them into Ethereum and other altcoins, Ethereum will start to see positive momentum. He anticipates this liquidity shift to occur before the end of the year.
Contrary to initial expectations, the performance of Spot Ethereum ETFs has been underwhelming since their launch on July 23. Analysts, including Sygnum Bank’s Head of Research Katalin Tischhauser, have expressed concerns about the low inflows into these funds. Tischhauser predicts that Ethereum ETFs may only attract around 15% of the flows that Bitcoin ETFs do in their first year of trading, with significantly less liquidity.
Roman’s prediction regarding the ETH price and its dependency on Bitcoin has raised concerns among investors and analysts. While the future of Ethereum remains uncertain, it is evident that the market dynamics between Bitcoin and altcoins play a significant role in determining Ethereum’s performance. As traders continue to monitor Bitcoin’s movements, the fate of Ethereum hangs in the balance, waiting for a potential shift in liquidity and market sentiment.
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