Ether’s price has already factored in much of the short-term macro risk and upcoming industry catalysts, setting it up for a period of sideways trading, according to a crypto analyst.
“A lot of near-term uncertainty is priced into Ethereum,” Swyftx lead analyst Pav Hundal told Cointelegraph on Thursday.
“It would not surprise me at all if ETH remains pretty subdued over the next few weeks.”
Hundal added that geopolitical tensions, including escalating issues around Iran, as well as progress on the US CLARITY Act, have largely already been factored into the price.
$19 billion liquidation event has weighed on Ether
He argued that Ether (ETH) is still rebuilding trust after the $19 billion liquidation event in October, with confidence yet to fully recover. “Ethereum is facing a double whammy in the short term,” Hundal said.
“October’s liquidation cascade removed $19 billion from the market, and now consumer sentiment has dropped to levels we’ve not seen since 2022,” he said.
Hundal argued that while traders are focused on where the next wave of liquidity will come from, they’re overlooking sentiment. “For me, consumer sentiment is the big story that no one is really talking about,” he said.
The Crypto Fear & Greed Index, which measures overall crypto market sentiment, posted an “Extreme Fear” score of 13 on Friday, indicating extreme caution among crypto investors.
However, despite cautious sentiment among retail investors, BitMine Immersion Technologies, the largest Ether treasury company, continues to increase its holdings.
The company recently acquired 45,759 ETH, bringing its total Ether balance to 4,371,497 ETH, representing approximately 3.62% of the 120.7 million ETH in circulation.
Ether will test “most experienced investors” in the medium term
It comes as Ether has fallen 56.8% from its October peak of approximately $4,687, a period when Bitcoin reached a new all-time high of $126,100, according to CoinMarketCap.
At the time of publication, Ether is trading at $2,021.
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Hundal said that over the medium term, he anticipates that Ether will test even “the most experienced investors,” but he is watching for any signs of Ether potentially starting to outperform Bitcoin.
“That is where things can get potentially explosive,” Hundal said.
Over the past seven days, the ETH/BTC ratio, which measures Ether’s relative strength to Bitcoin, is up 3.58%, according to TradingView.
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