Improved investor sentiment and growing interest in Ethereum ahead of the transition to PoS provokedrecovery of the cryptocurrency market. JPMorgan analysts came to this conclusion, writes CoinDesk.
Experts noted signs of the end of the “intensive phase” of the wave of leverage liquidations on long positions.
In support, they pointed to the narrowing of the spread between stETH and ETH.
How Celsius, 3AC and stETH problems will affect the price of Ethereum and the cryptocurrency market
“Maximum since 2018 backwardation in May-June seems to be over”, the bank said in a statement.
Analysts drew attention to increased activity on the Ethereum network. They connected this with the scheduled September 19 The Merge update.
The Merge: what to expect from the biggest update of Ethereum
Experts emphasized that the market recovery is not accompanied by an influx of funds into crypto funds. In their opinion, the growth driver is the activity of retail investors.
“Since the end of June, small wallets have seen an increase in Ethereum and Bitcoin balances due to larger holders”, experts emphasized.
Earlier, JP Morgan analysts noted a decrease in the cost of bitcoin mining to ~ $13,000, which could be a negative factor for digital gold pricing.
Recall that in July, the bank’s strategists suggested that the worst for the crypto market was over.
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