QCP Capital remains relatively optimistic about the long-term prospects for ETH
The forecast of analysts from QCP Capital about the likely decline in the price of Ethereum turned out to be correct. They warned of a fall in ETH amid the Dencun update after the second largest cryptocurrency by capitalization was able to overcome the $4,000 mark. This happened for the first time since April 2022.
Analysts pointed to a change in sentiment among crypto market participants and a weak likelihood of approval of an ether-based ETF. At the same time, they remained relatively optimistic about the long-term prospects of Ethereum.
Analysts’ concerns were related to the high level of leverage when trading ETH, which affects the growth of possible losses when prices for the digital currency decrease. Market indicators in ether options, which experts mentioned, also indicated the preconditions for a fall in the value of the digital asset.
According to Coinmarketcap, Ethereum is worth around $3,660. Over the past 24 hours, the crypto coin has fallen in price by more than 7%.
The Dencun update resulted in a reduction in the size of transactions on L2 networks for ETH. Moving tasks to second-layer solutions in the future can make operations more accessible on the main Ethereum network.
Dencun has become the most difficult update since The Merge, when ETH switched from PoW to PoS in 2022, according to the project developers. They are now preparing to update Pectra.
Earlier, cryptocurrency market analysts positively assessed the prospects for ether in March of this year. As the history of monitoring the asset shows, the first month of spring is one of the best for ETH. Over the past 7 years, the digital coin has met spring with a fall only twice — in 2018 and 2020.
According to Bitget analyst Ryan Lee, the holding of Dencun and the anticipation of the launch of ETH-ETF in the US could contribute to the positive movement of the cryptocurrency this month. The expert also allowed ether to reach another historical maximum in 2024.
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