Analysts at Bloomberg have determined a few reasons why Ethereum (CRYPTO: ETH) is gaining an upper hand over the Nasdaq 100.
What Happened: In the most recent edition of Bloomberg’s crypto outlook report, analysts stated Ethereum’s performance advantage over the Nasdaq could be “gaining fuel” with the war in Ukraine.
“Enduring outperformance and declining relative risk vs. the stock index were top factors favoring the No. 2 crypto before Russia's invasion,” commented the analysts led by Mike McGlone, Bloomberg Intelligence’s senior commodity strategist.
The report also highlighted that Ethereum’s 260-day volatility has been generally declining compared to the same risk measure of the Nasdaq since peaking at 11x in 2018. This figure is now close to 3x and analysts expect it to continue falling “particularly if the war increases recession risks and stock market volatility.”
“Bullish fundamentals are intact, and technical guidance has been straightforward, with buyers benefiting around $2,000 and sellers at about $4,000,” the report stated.
“If the stock market takes another leg lower, Ethereum is more likely to revisit the lower end. If equities drop fast, Ethereum could repeat last summer and revisit about $1,700. Once the weaker leveraged long positions were purged, the resolution was a new high around $4,800 in November.”
Price Action: On Friday morning, Ethereum was trading at $2,703.12, down 7.12% in the last 24 hours. The leading digital asset Bitcoin (CRYPTO: BTC) was down 5.50% over the same period, trading at a price of $40,922.50.
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