Ethereum (ETH) remains closely correlated to risk assets and its price trajectory could be even more bearish if U.S. stocks continue to fall, according to Mike McGlone, senior commodity strategist at Bloomberg Intelligence.
McGlone said that if overall market conditions worsen, ETH could fall to the $1,000 level later this year. However, while continued weakness in Bitcoin (BTC) could exacerbate losses in the altcoin market, a rally in ETH toward $2,000 could signal renewed strength in risk assets.
McGlone recently assessed the evolution and current challenges of Bitcoin in a statement. He said that Bitcoin, which emerged in 2009 alongside traditional safe haven assets such as gold, silver, platinum and palladium, has since given rise to a vast cryptocurrency ecosystem. He argued that these digital assets have become expensive and highly speculative.
“When a very bullish and speculative asset needs to continue to rise, market authorities have a history of making things difficult,” McGlone said.
*This is not investment advice.
