Ethereum’s most recent drop created fear among all investors in the market as the cryptocurrency slumped below the $1,000 threshold. However, some investors believe that ETH has not bottomed yet and the market should be ready for another drop.
Daniel Cheung, co-founder of Pangea Fund, believes that July or August could be the worst months for cryptocurrency. As the fund manager suggested, the market is currently in “Macro trading” mode as the digital asset industry tracks macro trends like inflation.
I believe that there is a massive short opportunity for $ETH at ~$1200 over the next 2 months.
We still have not seen real capitulation yet and July / August are lining up to be potentially the worst months.
Here is how I am thinking about things 🧵
— Daniel Cheung (@HighCoinviction) June 29, 2022
In the case of Ethereum, it is trading at 0.8 correlation with the Nasdaq; This suggests that the cryptocurrency is almost “blindly” following trends in traditional markets that are unlikely to recover in the next few months, given the growing hawkishness of the Fed.
Cheung also added that Ethereum will most likely be leveraged and investors will be able to gain exposure to the traditional market through the cryptocurrency, which almost replicates their movements in the market.
