Andrew Kang, co-founder of Mechanism Capital, a venture capital firm, reports who is currently ready to buy and sell the leading altcoin Ethereum (ETH). It seems that this list may be alarming for Ethereum (ETH) bulls. Here are the details…
Who is increasing the market share of the leading altcoin ETH? According to
Kang, at the end of May 2022, there is only one category of market participants interested in increasing the share of Ethereum (ETH) in their allocation. Kang says that traders interested in short-term scaling opportunities most likely bought Ethereum during the “fading sentiment.” As Kriptokoin.com , many cryptocurrencies are changing hands well below the record levels they saw last year. Therefore, the overall sentiment in the cryptocurrency market is bearish.
Other categories of Ethereum (ETH) believers spent their “money from the bottom” at the previous “1,000 bottom”, according to Kang. Therefore, at the moment, no one is interested in looking for an opportunity to “buy at the bottom” for a second cryptocurrency. At the same time, the list of “sellers” is increasing day by day. First of all, institutions are reducing their investments in Ethereum (ETH) as it cannot meet their expectations. Also, some corporate players are in dire need of cash to cover their losses after the Terra (LUNA) drama and other major crashes in recent weeks.
As it is known, Terra (LUNA), one of the largest cryptocurrencies until almost a month ago, reduced its value to almost zero after the stablecoin in its ecosystem TerraUSD (UST) diverged from the US dollar stable.
Do individual investors sell ETH?
According to Kang, individual investors also need to sell their Ethereum (ETH) portfolios “because they’ve been hit from all directions.” According to the expert, the situation seems to be the same in many projects. Many investors need cash to cover their expenses. Since Ethereum (ETH) failed to recover after the drop, “short-term investors” and miners are the two categories that sell the most. ETH reached $1,600 on May 27, 2022, which is 60 percent below the November record level. Finally, Kang adds that those who were previously interested in selling but expecting a “bounce” have lost hope for an Ethereum (ETH) recovery.
