According to Frank Downing, an analyst at investment management firm ARK Invest, Ethereum may begin to gather more bullish momentum as the cryptocurrency market pivots back into a risk-oriented environment.
He pointed out that last month when the market was falling and was in a capitulation cycle, ETH and assets built on ETH sold off very much compared to Bitcoin, not necessarily trading on fundamentals, but the market was completely risky .
But he said: “It was in late July that I think that started to shift and we saw the market gradually start to trade more on fundamentals on the margins.”
“We’ve seen the ETH/BTC pair, or ETH outperform relative to Bitcoin, which is different from what we’ve seen in a safe-haven period,” Downing said.
As a result, the market has resumed risk-taking on these types of assets.