Ethereum dips below $1.8k, CZ optimistic on an ETH rally

Ethereum, the altcoin king, is facing a rather turbulent market session today, recording losses of over 3% within the last 24 hours.

ETH, trading at $1760 as of press time, recorded a decrease of 3.18% as it sat on a weekly loss of 7.3%. ETH’s trading volume dropped by over 8% within the same period. 

Ethereum’s volatility levels are rising amid its bearish trend today, with the Bollinger bands utilized in the estimation of market volatility diverging away from each other, displaying the uncertainty on ETH’s network.

The relative strength index also moves below its average line, indicating a possible bearish momentum on ethereum. The MACD indicator also backs a bearish momentum as it moves negatively, indicating much bear activity on the network.

CZ bets on an ETH rally

However, despite the downtrend on ETH, Changpeng Zhao (CZ) has expressed optimism about the asset amid its current set of new records in the past few weeks. 

His optimistic prognosis is based on the fact that the beacon chain smart contract now has an all-time high of 19,375,242 ETH locked in it.

According to CZ, an increase in the amount of ethereum tokens that have been locked might result in a reduction in the total quantity of ETH that is currently accessible on the market, which could lead to an increase in the price of ETH.

Despite the general feeling of optimism over the future of ethereum, yet, experts are concerned about the possibility of a bear market for other cryptocurrencies.

A trader and analyst using the alias Bluntz have warned that alternative cryptocurrencies may follow a negative trend on longer timeframes and may see more severe than anticipated declines.