Nansen analysts warn of a decrease in optimism among Ethereum investors

Less optimistic sentiment among ETH investors turned out to be a more serious factor than the outflow from Ethereum-based ETFs. This opinion was expressed by analysts from Nansen.

Experts linked the current market situation to the release of macroeconomic statistics. Since the start of ETF trading, investors have withdrawn more than $420 million from them. During this time, the value of Ethereum has fallen by 26%.

“Bitcoin has adjusted down by 14%. In our opinion, this is “risk-averse fatigue” unrelated to the launch of an ETF. The first sale in March resulted in realized losses. Then, in July and August, the second one occurred, correlating with stocks. This happened against the background of the still confident but slowing growth of the US economy and overestimated TradFi estimates,” the experts noted.

They also said that the development of the situation depends on future decisions of the Fed.

“It is still unclear whether we are taking a pause in consolidation or whether prices have reached their peak. If the Fed can make cuts while maintaining [GDP] growth, then the bull market for cryptocurrencies and stocks is likely to continue. If the recovery [of the economy] slows down sharply, then risky assets will have fewer opportunities to increase quotations,” Nansen said.

And the famous crypto analyst Michael van de Poppe suggested that the price of Ethereum next month could exceed $3,000. The rate of the digital currency will push serious interest from American investors.

According to the expert’s analysis, the current market situation is similar to previous bullish trends, so the probability that Ether will reach $3,000 is 80%.

Weekly charts showed Ethereum finding support at $2,500 after its recent decline. Previously, it took about three weeks for ETH to rise from similar support levels to around $3,500. This was the case in early 2022 and earlier this year.

Investor interest in Ethereum is growing, as evidenced by the Coinbase Premium Index. ETH ETFs in the US have also seen capital inflows, with BlackRock’s ETA approaching $1 billion. Such demand has previously correlated with the recovery in the price of Ether.