Ether is showing good signs of recovery amid the global market comeback. The cryptocurrency market shed hundreds of million dollars in the past week, with coins like BTC trading at a two-year low of $26k. On the other hand, ETH plunged to $1.7k.
On Friday, the market mounted a comeback following a crash caused by the collapse of the Terra ecosystem. Terra’s UST and LUNA tokens depreciated considerably, with the UST stablecoin losing its peg to the USD. Meanwhile, LUNA shed almost 99% of its value, dropping drastically from over $100 to $0. It is the first time the crypto market is witnessing such a scenario.
ETH returned to above $2k. That represents an impressive 10% growth in the last 24 hours. Based on crypto charts, it looks like ETH has mounted a revival, but whether it will last is a topic for another day.
Experts think that ETH is on the right path to recovery. The $2k level is a familiar range for ETH, but investors are confident of further inclines in the coming weeks.
Data Predicts Bullishness for Ethereum
Santiment data shows that ETH could be in for a bullish run as whales prepare for more transactions. Analysts think whale transactions in the past two days are responsible for ETH’s uptrend.
Whales conducted over 3000 transactions between May 11 and 12, and are expected to conduct even more in the coming week. With whales in full swing, ETH could break past the $2k barrier.
The soar in whale movements has consequently increased the volume of transactions on the Ethereum blockchain. Another Santiment data indicates that transaction volume surpassed 13 million on May 13 from 9 million on May 11.
The Relative Strength Index also indicates a potential swing in prices. On the last day, the RSI value increased from 19 to 40.5. As the value solidifies around this territory, there’s a big chance that ETH will surge soon.
Mark Cuban Warns Against Crypto Investments
Shark Tank billionaire investor Mark Cuban issued a warning to investors who want to take advantage of the market to invest in digital assets. Cuban, a crypto advocate and DOGE cheerleader, warned investors against going overboard on virtual currencies.
He said crypto is going through a rough period, like equities. He noted that when money is cheap, people tend to invest somewhere to maximize returns. But, when the reverse is the case and prices start to decline, people only have one mission – to protect their investment.