After a BTC-dominated period in June, Ethereum (ETH) has enjoyed steady gains against Bitcoin (BTC), driven by the launch of ETFs.
$2000 Critical Level For Ethereum
ETH's +4.8% rise against BTC did not cause much excitement among investors.
In fact, the level of discussion about Ethereum is currently at its lowest point in 2023, similar to the situation observed in mid-May.
While this lack of interest may cause concern for some, historical testing has shown that many altcoins tend to perform well when investors focus on other assets in the market. Currently this bright asset is XRP.
A potential sign of an impending bottom price for ETH would be an increase in the number of trades made at a loss compared to trades with a profit.
Currently, the on-chain trading volume to profit-to-loss ratio supports profit making, although not significantly.
If the price of ETH declines further and remains near the $1,700-1,800 levels, panic selling could occur, leading to potential buying opportunities.
Likewise, if $2000 is passed quickly, a significant upward movement may come with the FOMO effect.
Investors' behavior and emotions also play an important role in predicting market movements.
The average return for addresses that have been active in the last 30 days is -0.35%, which is almost a breakeven situation.
On the other hand, long-term investors active in the last 365 days have an average return of +14.9%, which indicates a positive outlook for long-term ETH investors.
The most promising deals usually come when both short-term and long-term returns are significantly negative, but they are currently relatively close to neutral.
The Ethereum community seems unusually quiet at the moment, possibly due to their focus on XRP and other top market cap assets like Chainlink (LINK).
That patience can be rewarded, however, and analysts see the potential for ETH to gain momentum and surpass $2,000 by August or earlier.
*Not investment advice.
