Ethereum: bearish, but may be bottoming out according to Fidelity

More than two thirds of its price has already been lost in the market, the second cryptocurrency in the market while the downward trend continues, although there are those who consider that the worst could be very close. In the midst of a bearish environment that feeds on the asset, it also loses short-term positions.

Ethereum Development remains very focused on achieving “The Merge”, the dreamed and long-awaited merger that will increase its scalability and drastically reduce the cost of its transactions.

But that lateral thinking is what leads one of Fidelity’s digital asset specialists to say that the fall of Ethereum may be coming to an end. We are talking about the statements of Jurrien Timmer, the director of the global asset allocation division of Fidelity Investments, who has highlighted starting the comparison with Bitcoin because he considers that the worst in Ethereum is very close.

In his opinion, right now Bitcoin is cheap, according to the valuation that it establishes at 2013 levels, although he considers that the price has only returned to 2020 asset levels. Mind you, he sees the Bitcoin network as intact, and its growth, combined with lower prices, means its valuation drops.

And with that perspective, he points out that, based on that premise, perhaps Ethereum is even cheaper. In fact, the Fidelity analyst highlights that, if Ethereum is now where Bitcoin is four years ago, Ethereum could already be close to bottoming

Ethereum at the moment, is not even remotely recomposed. It has continued to fall in the last week, to exceed the 3% cut in the market. A decline in its price that is evidenced by the decrease of 26.7% per month, which becomes $67.12 per semester . Already so far this year the fall in the market reaches 70.8%.

Also in terms of capitalization, each time closer to leaving the 100 assets or companies with the most value in the world . It already ranks 93rd worldwide, with just $127.83 billion, below BHP Billiton Group, the Anglo-Australian miner, and above Hong Kong-based Chinese AIA, the world’s leading independent insurance insurer.

Regarding the technical indicators that Investment Strategies prepares, we see that Ethereum continues to have a negligible score of just half a point compared to the 10 total score to which it can aspire, with only the range of amplitude decreasing in the long term.

On the other hand, we see that the trend is bearish in the medium and long term, the total moment, both slow and fast, is negative for Ethereum, to which is added that the volume of business, on both sides, in the medium and also in the long term, it is decreasing. In addition to this, volatility is reduced, as it is growing in the medium term.

The market strategist indicated yesterday that “in the daily series, we validated the inside bar figure and we continue to fall. We will watch the loss of the short-term uptrend line as the first sign of weakness. The next support zone is around $1,042.760 / $1,039.762 per asset.” Thus, he estimates bearish continuity in the dynamics of the main cryptocurrencies in general and of Ethereum in particular if the bullish lines are lost.

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