Ethereum signals a major bullish reversal: What to expect – London Business News | Londonlovesbusiness.com

Ethereum is the second largest cryptocurrency asset and is second only to Bitcoin. It is also the second crypto asset to be created and it has seen its fair share of price upticks and downsizing. The current uptrend of Ethereum’s price has left many enthusiasts and ETH holders enthusiastic. Some industry experts have echoed the sentiment that there may be a bullish reversal in the future of Ethereum. While this is a divisive opinion, we will examine some of the factors that may cause this reversal to occur. Let’s get right in.

Ethereum and its use cases

Before we get into the factors that may cause a reversal, we must first examine the use cases of this cryptocurrency asset. The various uses of Ethereum have contributed to its price stability and up trend. Although Ethereum has challengers from other L1 blockchains, it has managed to stay on top by leading the innovation trend. Here are some of the popular use cases of Ethereum.

• Gaming: Gaming is one of the biggest use cases for Ethereum as it has produced blockbusters like Axie Infinity which took the world by storm. You can also use the ETH token to play online games at an Ethereum online casino. The gaming use case continues to expand the user base as players purchase the token to access their favorite games.
• DEFI: Decentralized Finance is the use of money legos powered by the blockchain to create an alternative financial system free from central governments and institutional interference.
• NFTs: Non-Fungible Tokens are one of one digital tokens that can be used to represent real-world or online assets. The most common use of NFTs so far has been art projects such as Crypto Punks and Bored Ape Yacht Club (BAYC).
• DAOs: Decentralized Autonomous Organizations are communities powered by the blockchain. These decentralized entities are made of members who hold voting tokens that allow them to make decisions. Decisions are submitted as proposals and the majority votes are executed by the DAO.

Why Ethereum may experience a price reversal

Price reversals are a form of correction that is common in the market. It occurs when the price of an asset has outpaced its current utility and value. While there are no concrete signs to show that a reversal may occur soon, here are some factors that may trigger a reversal.

Market trends

Market trends affect the price of cryptocurrency assets. If the market is in a bull run then prices tend to go up. When the market is in a bear run, the prices tend to fall regardless of the asset value. There are also instances where assets may fall in a bull market or rise in a bear market due to buying or selling pressure although this is usually short-term. It is important to understand how the market sentiment could affect the price of Ethereum and the possibility of a bullish reversal within these conditions.

Moving averages

Moving averages are measured in long and short horizons. It monitors the asset volume that is traded within a specific period. If the moving average of an asset is lower in the shorter time frames, this is a signal that the asset may witness a price correction. In a bull market, this could lead to a bullish reversal which could see the price of the asset fall before shooting back up based on market trends. Monitoring the moving average of Ethereum will help you to determine the likely outcome of the asset price in the short term. Remember that this is only an indicator of the volume of the asset’s trades and must be combined with other fundamental analyses to get a definite result.

Ethereum ETF

The Ethereum ETF (Exchange-Traded Fund) was approved for a few financial brokers this year (2024). It saw the price of Ethereum soar as institutional money flooded into the asset. Many experts believe that when the euphoria around the ETF wears out, a price correction will occur to reveal the true price of the asset. This speculation is based on the same occurrence when the Bitcoin ETF was announced earlier this year. It remains to be seen if the impact on Ethereum will be the same.

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