The market has been hit by the bears, but Ethereum (ETH) has managed to hold the sideways movement in the 24-hour chart. Trading at $ 2,404.36, ETH moved to an all-time high before the crash. Investors looking for a good entry into a long position can take advantage of the current dip.
Analyst Ben Lilly is keeping a close eye on the ETH / USD trading pair. The analyst forecast the recent bullish price action, claiming increased volatility for the pair as it moved towards a low point on its gamma curve.
The gamut on this trading pair was used as a metric to measure how quickly an asset’s price can change in relation to each one-point increase. as Ben Lily said:
(…) Back on maximum negative gamut, putting about $ 1.5 million per $ 10. (Volatility) still high until the weekly close tomorrow.
At the time of writing, the price of Bitcoin (BTC) is falling in the lower and high timeframes. On the other hand, ETH has significant support at the above levels. This price action coincides with a decline in Bitcoin’s dominance to similar levels not seen since the 2017 bull market.
During this period, “altcoins went bananas,” as the analyst said while sharing the chart below, showing two moments when the price of ETH “exceeded expectations”. Ben Lilly added:
The first breakthrough higher resulted in nearly 800% efficiency, while the second more than 400%. These kinds of “effects” are what I consider to be violations of the norm (…). And for now, I see the potential of one altseason starting to take shape.
Ethereum’s most bullish factor
Two additional events could act as a catalyst for ETH’s prize. As the analyst said in a previous analysis, investment firm Grayscale will begin acquiring assets for its product in late April.
Initially, this could have favored Bitcoin’s price as the Grayscale Bitcoin Trust (GBTC) has accounted for much of the demand for this cryptocurrency in recent months. The situation could be different now, as Ben Lilly said:
One thing I would like to add is that the capital flow of the GBTC security may not re-enter. But take ETHE or the other trusts. The other Trusts have less circulating supply and creating premiums in those vehicles is less capital intensive. Grayscale Effect 2.0 – Altcoin Version?
However, ETH’s largest catalyst could be implemented with Hard Fork London and EIP-1559. This update, which will be rolled out in July, will change Ethereum’s fee model and will make ETH an asset with deflationary pressures and an offer that is constantly diminishing. Co-founder of Ethhub.eth, Anthony Sassano, explained it like this:
Once EIP-1559 is implemented, every single transaction on Ethereum will burn $ ETH. Every liquidation, every ETH transfer, every layer 2 proof, every DEX trade, and even every carpet – no matter what the trade is – ETH will be burned. Forever.