Can these “favorable conditions” push ETH down to $ 5,000 by the end of the fourth quarter?

September was a difficult month for investors, especially those who bet a lot on ETH, as the price fell more than 13%. However, such a downward movement is normal.

Fortunately, ETH has made up for those losses significantly at the time of writing and is trading at $ 3,560.

ETH 4-Hour Price Chart | Source: Tradingview

Obviously, this volatility has fueled much speculation about the position of the largest altcoin in the market in the coming months.

Quarter 4 What will it bring? ETH?

In a recent report for Bloomberg Intelligence, high-end commodity strategist Mike McGlone analysis what could happen in the near future. He compares ETH to its closest competitor on the market capitalization ranking, Bitcoin. McGlone uses a number of different metrics to back up his claim, arguing that he’s pretty optimistic about ETH in the fourth quarter.

According to McGlone, Ethereum has many favorable terms from the NFT, Fintech, Stablecoin, and DeFi space to support a bullish recovery. Against this background, ETH is still at the beginning of pricing and could continue to rise.

At the same time, he argues that EIP-1559 brought new bullish momentum into ETH orbit.

“Demand and acceptance are increasing, but our model shows a remarkable difference from a year ago: the supply is declining. At the beginning of the 4th quarter of 2020, the 12-month rate of change of the ETH offering from Mosaic was almost 5%. It is currently well on the way to dropping to 2% due to the recent upgrade. “

Put simply, the analyst believes we could see a consolidated bullish ETH market going forward.

ETH and BTC: struggle no end

These two cryptocurrencies have been facing each other for a long time. While BTC has maintained its dominant position so far, will ETH likely take over?

Well some people definitely do.

The digitization of money and finance, along with ETH use cases, has helped attract many key players. In addition, ETH holds a large market share compared to its direct competitors.

For example, consider the table attached here. The second largest cryptocurrency by market capitalization is starting to shine so far.

The source: Bloomberg

In the DeFi sector, growth is exponential, with the Total Value Locked (TVL) of these assets reaching $ 100 billion today compared to $ 20 billion in 2020. Idea:

“The data from Mosaic and Coin Dance place ETH at the top of the chain and show that the value of this crypto currency is growing and is emerging as a platform for smart contracts, NFTs and DeFi.”

Oddly enough, the report also claims that ETH price was overvalued above $ 4,000 in May, but it currently appears to be at a more reasonable level of $ 3,500.

As already mentioned, ETH will have the chance to climb to the top and test some benchmarks in the coming days. McGlone continued:

“With the ETH indicators now becoming bullish, you can assume that ETH will break the 50% and 61.8% Fib extensions relatively easily and hit a new ATH close to $ 5,000.”

CoinShares, on the other hand, tells a slightly different story for the top altcoin. Despite the high inflow in the past week, the market share has fallen by around 3%. It may be a few more weeks before we get a clearer answer.

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Minh Anh

According to AMBCrypto

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