Ethereum’s Bear Market Phase May Soon End Thanks to Strong Fundamentals
Ethereum’s price has dipped into a bear market recently, but there are signs of a potential rebound. Teh coin’s price has fallen by over 22% from its year-to-date high of $4,965. However, it’s up about 2.4% in the past 24 hours.
Several factors could drive Ethereum’s price up. One is the continued accumulation of Ether tokens by companies like BitMine. This week, BitMine added more coins to its holdings, bringing the total to over $6.6 billion. The company’s founder, Tom Lee, remains bullish on Ethereum and expects BitMine to keep buying in the coming months.
Other entities, like SharpLink and The Ether Machine, also hold notable amounts of Ethereum. Huobi’s founder has even pledged to start a $1 billion Ethereum treasury company.
Ethereum’s ability to generate income through staking is another advantage. According to stakingrewards, Ethereum has a staking yield of 3%. This feature makes it more attractive than Bitcoin.
Ethereum ETFs have also performed better than Bitcoin ETFs. This week, Ethereum funds saw outflows of just $232 million, compared to Bitcoin’s $1.2 billion.
Technical analysis suggests a positive outlook for Ethereum. The daily chart shows a bullish flag pattern, indicating a potential price rebound. If this happens, Ethereum could retest its year-to-date high of $4,963 and even reach $5,000. Though, a drop below the lower side of the channel could signal more downside, perhaps to $3,000.
