Second-best cryptocurrency plummets in 2022, but investors speculate whether it’s bottoming out
Bloomberg Commodity Analyst Michael McGlone recently released a report that said Ethereum’s performance relative to Bitcoin was promising despite disastrous price volatility for most risky assets in 2022. bottom.
Ethereum’s growth may have reached an inflection point after moving to Proof of Stake in September. This means it has the potential to dominate both Bitcoin and the stock market.
He also believes that Ethereum’s key support/resistance levels are in the $1,000-$2,000 range, the second largest cryptocurrency.
McGlone highlighted Solana’s 97% drawdown as an example of cryptocurrency speculative excesses being wiped out after the 2021 turmoil. Ethereum’s main competitor was hit particularly hard by the collapse of the FTX exchange, but has recovered in the light of BONK’s airdrop.
Cryptocurrencies appear to be facing their first global economic slowdown, according to McGron, but traditional financial systems, especially Bitcoin and Ethereum, are expected to outperform even as other currencies fall. looks like
According to McGlone, as more people move away from mainstream investment vehicles and add cryptocurrencies to their portfolios, blockchain technology will continue to expand and look set to bring new opportunities throughout 2023.
Ethereum price is trading at $1,247 at the time of writing on the Bitstamp exchange. Bitcoin is trading at $16,808.