The rough patch is continuing for both Ethereum and Bitcoin. BTCUSD recently broke below a medium-term trendline and formed a Death Cross.
The correlation in movement between ETHUSD and BTCUSD is quite high. However, Ethereum copes up with the decline much better than Bitcoin. Ethereum enthusiasts are extremely for the arrival of ETH 2.0.
Growing participation in ETHUSD
Several Hedge Funds immediately jumped in as soon as they realized the possibility of earning profits. The institutional participation in cryptocurrency has increased manifolds this year.
Hedge funds, wealth managers and other institutions have increased their buying of BTCUSD and ETHUSD since the beginning of this year. The growing attention towards the crypto space became more prominent when the world’s biggest investment bank, Goldman Sachs, came out with a controversial report on Bitcoin.
The CEO of Kraken crypto exchange, Mr Jesse Powell, said in an interview to Bloomberg that:
“We have seen a massive influx of new accounts from hedge funds, wealth managers, retail investors and day traders. We have seen people taking their stimulus checks and rolling them into Bitcoin.”
Retail investors and traders are massively accumulating ETHUSD
It is not only the institutions but the retail traders as well, who are buying the cryptocurrencies. In this aspect, however, the second-largest crypto by market capitalization, Ethereum, is performing much better than Bitcoin, which is the largest.
The four-hour timeframe for ETHUSD shows that Ethereum is extremely Bearish in the short term.
ETH 2.0 is likely to roll out this year. Some analysts believe that it will be a game-changer to the cryptocurrency space.
ETH 2.0 will offer the holders having more than 32 coins to stake their holdings. They will get paid for the same. It has caused a tremendous increase in buying by small traders.
People are no longer looking at short term gains. That is why, despite being extremely Bearish in the short term, ETHUSD is witnessing significant accumulation.