According to the Kraken exchange, the current price of Ether is 40% below its all-time high of $4,900, and the cryptocurrency has recently reached "oversold" territory. From a fundamental analysis, this means that its price is already below reasonable market levels, creating additional opportunities for long-term investors. In particular, strategic cryptocurrency investors tend to increase their holdings when prices reach "oversold territory" because this qualifies them to generate additional returns on future investments when positive trends persist.
The high rate of Ether additions by long-term investors usually leads to a high probability that the market will end its correction in the next few weeks. The growing demand for Ether due to the combined gap between its realized market price and its equilibrium level may help the price of Ether gradually return to its affordable level. Changes in market trends may also attract other investors (even those who do not follow the RSI and other "oversold" or "overbought" indicators), helping to achieve more sustainable price increases over the next few months until new macroeconomic or institutional factors affect their behavior.
Overall, the available historical data from the Kraken exchange increase suggests that the price correction phase for Ether will not last long and that the emerging potential for "above market" returns will be effectively exploited by investors.
At the same time, analysts of Kraken Exchange do not guarantee 100% certainty that this scenario will materialize. Although the probability of a change in the trend in recent weeks is high, it does not necessarily happen.
The potential for a "cryptocurrency winter" to have a more severe impact on the prices and capitalization of major cryptocurrencies remains. In fact, the considerable market and institutional uncertainty that currently exists may generate additional price shocks that will affect the sustainability of the cryptocurrency market in the coming months.
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The addition of additional empirical data and the future direction of Ether prices may help to draw more informed conclusions and acquisition strategies. The presence of negative external influences is likely to cause Ether to move further into "oversold" territory, with prices falling proportionally.
However, even a negative scenario would not challenge the long-term potential of the major cottage coins. All else being equal, a more severe correction would lead to faster subsequent growth to restore the balance between market and industry fundamentals factors.