Bitcoin and Ethereum Seek Support! Even the upside will be limited

Bitcoin and Ethereum struggle to regain their lost glory

The cryptocurrency market is often affected by many factors such as expectations or political events. However, after numerous analyzes and surveys, researchers and crypto-analysts found that cryptocurrency prices were largely driven by the first cryptocurrency, Bitcoin. Bitcoin valuation triggered major changes in top cryptocurrencies such as Ethereum and other altcoins. According to these analysts, Ethereum turns out to be one of the cryptocurrencies most closely associated with BTC. Also, their correlation is sometimes scary as it confuses investors into thinking which cryptocurrency is more reliable than the other. Recently, after the crash of the cryptocurrency market in the fourth quarter of 2021, both Bitcoin and Ethereum suffered greatly. Their prices have been the most volatile over the past two months. But their association makes it more difficult for either of them to get past the current resistance. In fact, the new year started with quite a rough correction, which discouraged many investors from investing in cryptocurrencies, who eventually ended up moving towards the hard traditional assets.

According to coinmarketcap, the current valuation of Bitcoin is around $39,000, and Ethereum is around $2,800. In the first week of April, Bitcoin finally reached its breaking point at $47,000, as major indicators predicted that the cryptocurrency needs to break through this position in order to break its downtrend. The same was noted for Ethereum. If Bitcoin breaks the $50,000 resistance level, Ether could still cross at least $3,500. But neither of them happened. Investor market sentiment appears to be mostly looking for other alternatives to these two, or perhaps switching from digital to fixed assets.

Why are Bitcoin and Ethereum still dropping?

Investors have been fighting against rising inflation, the geopolitical crisis, and concerns about monetary and crypto-tightening policies imposed by many government institutions. These factors continue to cause additional volatility in cryptocurrencies, as well as stock markets. Although the cryptocurrency market has seen an increasing trend of mainstream adoption, the biggest cryptocurrencies in the market are lagging behind, decreasing the full potential of the crypto market.

In the near future, the price of Ethereum is expected to rise after the launch of the Ethereum ‘Merge’ upgrade. The upgrade aims to change how transactions are conducted on Ethereum, making it more efficient and sustainable for widespread use. But until the launch wait ends, Ethereum investors will continue to build their predictions. The price of Ethereum in the future will also be governed by the way companies interact after developing the new Ethereum platform.

But after the launch of the Ether upgrade, its investors are fully hopeful that in the near future the cryptocurrency will overtake Bitcoin to become the largest cryptocurrency in the world. Some believe that this is unlikely to happen, but with less market support from Bitcoin, it seems entirely possible.

So, are Bitcoin and Ethereum worth your investment?

Both Bitcoin and Ethereum are in a volatile phase at the moment, so it is very difficult to predict which cryptocurrency will be the best option. But if you are someone who loves to navigate the volatility of the crypto market, this is probably your ship. Both cryptocurrencies are expected to rise in the future, given their market dominance, this is sure to happen in the coming months, but the question is, when? Most investors are turning towards other forms of investments like NFTs, or traditional assets, but there has been a growing trend to adopt Bitcoin and Ethereum, so, the future looks only positive!

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