It is possible that at the time of writing, more traders are shorting ETH than they are accumulating. In the current bloody market situation, ETH price is 26% lower than last week with a market capitalization of $ 226 billion and a drop in trading volume signaling an accumulation.

But what does this mean when retailers buy at current prices? What would the worst-case scenario be? The best reward based on the current statistics would be to lock coins in the ETH2 validation because if you buy ETH at the current price the trader has a price factor of 32. The ETH2 validation is an alternative for traders who don’t trade or want to invest in a decentralized system Financing project (DeFi).

The annual percentage rate of return (APY) after consolidation is expected to be greater than 50% and will not decline rapidly. In the worst case, traders with high profits can hedge against the price. Then what’s the best case? Based on the price chart, long term wealth accumulation is the best scenario.

ETH price chart | Source: Tradingview

According to the price chart above, ETH is trading at $ 1,889 and is still above the last week of May 2021’s level at $ 1737. This means that the price has not yet fallen to its lowest level in the past month and that a recovery is possible in the short term due to the high volatility.

Currently, social dominance and volume are increasing. A decline in either the metric or both could signal an impending bull run for ETH. In this case, traders who accumulate now will be profitable. In addition, of 42% of major investors who own ETH in their wallet, more than 85% are currently profitable.

If the price recovers and exceeds $ 2,500, there is a chance that value could rise to 99%. As a result, ETH is currently undervalued and the number of large investors accumulating below USD 2,200 is very high. To make a profit of $ 2,200, a trader must buy ETH at a lower price.

So the question is, is there another drop before buying ETH at current prices? Based on the indicators, this is unlikely unless the price drops below the psychologically important $ 1,800 level within a week.

You can see the ETH price here.

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Minh Anh

According to AMBCrypto

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