The demand for Ethereum is weakening and there is a serious imbalance between buying and selling it…according to one of the analysts
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Answer The demand for Ethereum is weakening and there is a serious imbalance between buying and selling it…according to one of the analysts
He told Andrei Kang, co-founder and partner at VC Heavyweight Mechanism Capital, that he is ready to buy and sell Ethereum (ETH) right now (i.e. he only accepts speculation on it).
ETH dollar He has a huge glitch in the flows pic.twitter.com/C1mWeT8dpp
– Andrew Kang (¤, ¤) (Rewkang) May 28, 2022
Speculating on Ethereum instead of investing for the long term:
According to Mr. Kang, by the end of May 2022, there is only one category of market participants interested in increasing their shares of Ethereum (ETH) in their portfolios, and that is the traders who are interested in short-term speculative opportunities, as they are most likely to be buying Ethereum now because the price Ethereum has reached approximate numbers or amid weak sentiment around it, and they are counting on its bounce and rise to higher levels.
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According to the same analyst, all other classes of Ethereum believers have already spent their money.
As such, no one is interested in looking for an opportunity to buy a pullback for the second cryptocurrency right now.
Ethereum sellers: Institutions, retail investors, and miners
At the same time, the list of “sellers” is increasing day by day.
First of all, institutions are reducing their exposure to Ethereum (ETH) because it fails to meet their expectations.
Some institutional players are also in dire need of cash to cover their losses after the drama of Terra (LUNA) and other major meltdowns in recent weeks.
Individual investors also need to sell their bags of Ethereum, because the current bleeding has touched most of the trends in the crypto market.
This seems to be the case for many projects as they need more money to cover their expenses.
Short sellers and miners are two other categories of sellers.
As Ethereum failed to recover from the crash.
On May 27, 2022, Ethereum touched the $1,600 level, which is 60% lower than the high recorded in November.
Read:Decentralized finance project Crema Finance suspends liquidity services after being hacked
Last but not least, Mr. Kang adds that people who were interested in selling before but were waiting for a bounce are gradually losing hope for Ethereum’s recovery.
In sum, Mr. Kang’s view is somewhat pessimistic towards Ethereum, and in general, it can be said that the current decline of Ethereum and the lack of demand for it may be due to the continuous delays related to Ethereum 2.0 and the transition from the mining mechanism to the quota mechanism.
Once the new update is launched, investors’ appetite for Ethereum may increase again and return to its former glory.
Read also:
South Korea steps up investigations into Terra…Will LUNA 2.0 be affected?
Bitcoin rebounded above $30K after recording 9 consecutive weeks of losses and negative closes
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