Bitcoin and Ethereum Strive to Get Support! Even Upside will be Limited

Bitcoin and Ethereum Strive to Get Support! Even Upside will be Limited

Bitcoin and Ethereum are both struggling to gain back their lost glory

The cryptocurrency market is often influenced by several factors like forecasts or political events. However, after several analyses and surveys, researchers and crypto analysts have found that the crypto prices have been largely driven by the first-mover cryptocurrency, Bitcoin. The valuation of Bitcoin has triggered major changes in top cryptocurrencies like Ethereum, and other altcoins. According to these analysts, Ethereum turned out to be one of the most relatable cryptocurrencies with BTC. Their correlation is also sometimes spooky since it overwhelms investors into thinking as to which cryptocurrency is more reliable than the other. Recently, after the crypto market meltdown in the Q4 of 2021, Bitcoin and Ethereum have suffered drastically. Their prices have been the most volatile over the past couple of months. But their correlation makes it even more difficult for either of them to move past their current resistance. In fact, the new year started with quite a rough patch, discouraging several investors from investing in cryptocurrencies, who eventually ended up moving towards hard, traditional assets.

According to coinmarketcap, the current valuation of Bitcoin stands at around US$39,000, and that of Ethereum is around US$2,800. In the first week of April, Bitcoin finally reached a breaking point at US$47,000, where key indicators predicted that the crypto needs to move past this position in order to break its bearish trend. The same was indicated for Ethereum. If Bitcoin would have crossed the US$50,000 resistance, it still would have been possible for Ether to at least cross US$3,500. But neither of them happened. It seems like investor market sentiments are mostly seeking other alternatives to these two, or they are probably moving from digital assets to hard assets.

Why are Bitcoin and Ethereum still falling?

Investors have been fighting against the rising inflation, geopolitical crisis, and concerns over tighter monetary and cryptocurrency policies that are being imposed by several government institutions. These factors continue to drive extra volatility in the crypto, as well as the stock markets. Even though the cryptocurrency market has witnessed a rising trend of mainstream adoption, the largest cryptocurrencies in the market are lagging behind, dragging down the entire potential of the crypto market.

In the near future, Ethereum prices are expected to go up after the launch of the Ethereum 'Merge' upgrade. The upgrade aims to change how transactions on Ethereum are conducted, making it more efficient and sustainable for widespread use. But until the wait for the launch is over, Ethereum investors will continue to build up their anticipation. The Ethereum price in the future will also be governed by the way companies react after they develop Ethereum's new platform.

But after the launch of the Ether upgrade, its investors are quite hopeful that in the near future the crypto will overtake Bitcoin to become the largest cryptocurrency in the world. Some believe that it is less likely to happen, but with Bitcoin reducing market support, it seems quite possible.

So, are Bitcoin and Ethereum worthy of your investments?

Both Bitcoin and Ethereum are at a volatile stage right now, so it is quite difficult to predict which cryptocurrency will be a better choice. But if you are someone who loves to sail the crypto market volatility, then probably this will be your ship. Both the cryptocurrencies are expected to rise in the future, given their market dominance, it will surely happen in the coming months, but the question is, when? Most investors are moving towards other forms of investments like NFTs, or traditional assets, but there has been a growing trend of Bitcoin and Ethereum adoption, so, the future seems only positive!

Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.

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