Bitcoin stagnates as analyst predicts Ethereum may bottom by year-end

Crypto market activity was minimal on Friday. At the time of writing, Bitcoin was trading flat at $58,020, down just 0.4% in the past 24 hours and 5% compared to the same time last month.

As trading volumes decline ahead of the weekend, analysts are predicting that Ethereum (ETH) could hit a bottom in the next two to four months.

The second-largest cryptocurrency by market cap experienced a slightly sharper drop in morning trading on Friday, trading at $2,345, down 0.8% over the past day, according to data from CoinGecko.

Notably, Ethereum has underperformed Bitcoin over the past month, dropping 15% compared to Bitcoin’s 5% drop.

During this period of consolidation, analysts at 10X Research suggest that Ethereum may be approaching a long-term oversold condition. While they caution against expecting an immediate bounce, the firm predicts that a bottom could form within the next two to four months.

“Traders should keep an eye on medium-term reversal indicators such as the RSI and Stochastics,” the 10X research team advised, noting that these indicators could signal a reversal from oversold levels.

RSI measures the speed and change of price movements to identify overbought or oversold conditions, while Stochastics compares a security's closing price to its price range over a period of time to help anticipate potential market reversals.

Meanwhile, the ETF market continues to see conflicting trends between Bitcoin and Ethereum products. Bitcoin spot ETFs saw net inflows of $39 million on Sept. 12, with ARK (ARKB) and Fidelity (FBTC) leading the way with inflows of $18.3 million and $11.5 million, respectively.

In contrast, the Ethereum Spot ETF experienced net outflows of $20.1 million on the same day, mostly driven by the Grayscale (ETHE) fund.

James Davis, co-founder and chief product officer at Crypto Valley exchange CVEX.XYZ, said: Decryption Broader economic factors are having a notable impact on markets.

“Tech stocks are trending higher globally, inflation data is good, growth data is improving everywhere, so it's becoming a better place to invest,” Davis said. Davis also highlighted the importance of strong Chinese data and a possible cut in U.S. interest rates as factors pushing the market toward growth.

Fideum co-founder Darren Franceschini said ahead of the US presidential election: Decryption He expects a period of flat prices heading into November.

“The outcome of this election could have a significant impact on the future acceptance and regulation of cryptocurrencies in U.S. financial markets,” he said.

He suggested that a crypto-friendly president could act as a catalyst for market growth, but until there is more clarity, he expects high trading volumes but minimal price volatility.

Editor: Stacey Elliott.