Analysts looking at Ethereum numbers are worried about the coin being overbought or overvalued as we continue to wait for implementation of the Ethereum 2.0 update.
Ethereum 2.0 is supposed to solve all kinds of issues with cybersecurity and utility enhancements that should improve the functionality of Ethereum blockchain smart contracts.
But as of now we still haven’t seen Ethereum 2.0 spring into action, and that may be having an effect on investor positions, according to some recent research.
Today, Samuel Haig at Cointelegraph documents the increase in both short and long positions, suggesting that some traders might be banking on Ethereum to crash.
As for Ethereum value, we see that it stands right around $200, which is kind of a median value after ETH lost at least 15% over the weekend – six month highs are around $280, which would have been a good point for profit-taking.
But hindsight is 20/20.
As far as the impact of a delayed Ethereum 2.0, at least one renowned finance guru is suggesting that a delay won’t hurt Ethereum too much.
“Just judging on the price action, it would seem that Vitalik’s statements have not had that much of an impact,” Mati Greenspan told Cointelegraph, according to Haig’s reporting. “All startups have a tendency to push dates back and have delays, especially when they’re rolling out major upgrades. Everything that is happening in DeFi is extremely exciting … I’m bullish.”
Here’s more current analysis from Ali Martinez at Crypto Briefing:
“Ether’s price action appears to be contained within an ascending parallel channel that developed on its daily chart since the March crypto market free-fall. Each time ETH rises to the upper boundary of this channel, it retraces down to hit the lower boundary, and from this point, it bounces back up again. This is consistent with the characteristics of a channel. … (a resistance barrier) prevented ETH from further advance as it has tested this high over the past three months. Subsequently, resulting in a pullback to the bottom of the channel, which coincides with the downward impulse seen over the weekend. If the ascending parallel channel continues to hold, it is reasonable to expect a bounce back to the middle or upper boundary of this technical pattern.”
Keep an eye on where Ethereum goes if you have crypto holdings related to this major presence in the blockchain market.