Ethereum (ETH) could be hammered by macro conditions, according to crypto analyst – here’s why
A widely followed crypto analyst says macro conditions could spell trouble for leading smart contract platform Ethereum (ETH).
In a new video update, DataDash host Nicholas Merten tells his 515,000 YouTube subscribers that macro factors may overshadow the hype surrounding Ethereum’s upcoming merger into a proof-of-stake consensus mechanism.
“Federal Reserve, which we looked through [the latest] meeting minutes, regardless of The Merge in Ethereum and all these major technological innovations, the outlook for monetary policy is mixed, and that is not what the market was looking for. You can clearly see that reflected in the share prices in the last few days since the meeting on Wednesday. Since back on the 17th we have slowly ticked down along [bearish] momentum is building.”
With the macro backdrop as a headwind for crypto markets, Merten says both Ethereum and Bitcoin (BTC) are now showing signs of slowing.
“While Ethereum has been quite strong, it started to look exhausted in recent weeks. And Bitcoin, which should really be leading the pack as the biggest cryptocurrency in a generally risky environment…but it wasn’t. It showed incredible signs of weakness. Whenever Bitcoin’s price would tick up, you would have a follow-up of about six to seven days of slow red candles.”
Merten also highlights that Ethereum in its Bitcoin pair (ETH/BTC) also looks overdone from its over 50% rally in about two months.
“ETH/BTC ratio, we were talking about that the other day [it] began to look tired. It goes up against the previous series where we started to set temporary highs in price. And now, with the daylight we have here, this looks like further confirmation.”
Bitcoin is changing hands at $21,355 at the time of writing, a gain of 2.5% on the day while Ethereum is trading at $1,590, a gain of 3.9% over the last 24 hours.
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Featured image: Shutterstock/Vit-Mar
