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- Bitcoin has gained popularity, with 43 percent of respondents preferring it over Ethereum. ETH maintains its dominant position in investors’ portfolios, showcasing its resilience in the crypto market.
- Crypto analyst Nicholas Merten predicts an altcoin sell-off but sees Ethereum as an exception. He highlights Ethereum’s ascending triangle pattern, projecting positive performance and stability amid market uncertainties.
In a recent survey gauging investor sentiment towards cryptocurrencies, Bitcoin emerged as the clear favorite with a compelling growth outlook, which 43 percent of respondents preferred. Ethereum, on the other hand, faced a shift in sentiment with a decrease in popularity compared to Bitcoin. However, Ethereum remains the largest holding in investors’ portfolios despite this change.
Ethereum’s Resilient Position
While the survey revealed a preference for Bitcoin over Ethereum, investors seem to be diversifying their crypto holdings. They are increasingly exploring alternative cryptocurrencies (altcoins) like liquid staking derivatives and Layer 2 solutions, which witnessed a significant uptick in interest, rising to 10 percent from the previous month.
Although Ethereum ranks second in sentiment, investors diversify their holdings by reducing stakes in Bitcoin and Ethereum. Instead, they are turning to alternatives like Polkadot, Cardano, and Ripple-affiliated XRP. However, it’s important to note that despite the optimism for these altcoins, overall positioning has declined, likely due to their relative price weakness.
During the survey, digital asset weighting in portfolios experienced a noticeable decline, dropping from 1.8 percent in April to 0.7 percent by the end of June.
In a positive turn of events, the past three weeks have seen a significant influx of over $470 million into digital assets. This marks a strong recovery from the $400 million outflow observed in the first half of 2023. The catalyst for this swift change in sentiment is believed to be the recent BlackRock ETF filing.
The potential for growth in distributed ledger technology (DLT) remains a key driving force behind the heightened interest in digital assets, accounting for 37 percent of all reasons to add them to investment portfolios. Investors also seek to diversify into digital assets as a haven, a sentiment that emerged during the recent U.S. banking crisis. However, regulatory risks and potential government bans pose prevailing concerns, especially with current signals from the U.S. SEC.
Ethereum’s Promising Outlook Amid Altcoin Sell-Off Concerns
Renowned crypto analyst Nicholas Merten, or DataDash on YouTube, predicts a potential sell-off event for altcoins. He believes Ethereum may be an exception to this trend. Merten highlights the price pattern, an ascending triangle over the past year, suggesting a bounce to the upside.
Not only are altcoins at the moment looking like they’re ready for a continued pullback, we’re doing our due diligence, we’re trying to find the projects we’re interested in but at the same time, I’m going to be honest with you guys, I do see the market continuing to correct.
Merten shares his insights with his 511,000 YouTube subscribers, advising caution on altcoins while expressing optimism for Ethereum’s future price performance.
With the market experiencing fluctuations and uncertainties, investors closely monitor Ethereum’s behavior, as it may hold the key to stability amid the prevailing volatility.
Out of all the cryptocurrencies out there, one that has stood out that looks at least more bullish to me is the price pattern of Ethereum. Over the last more than a year, it has been building an ascending triangle. This is a bullish pattern where you have a flat range of resistance, ascending lows that line up, squeezing and coiling in price, usually to bounce to the upside. However, I want to make it clear that there’s no guarantee of that as with all technical patterns, we’re just simply working with what we have.
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