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The Ethereum (CRYPTO: ETH) price is up 18% over the past month, and it currently rests at the $2,453 level.
The cryptocurrency is struggling year to date, being down around 50%. It has made a recovery since touching an apparent bottom in June, but it has gone through some wild swings since then.
Meanwhile, Bitcoin (CRYPTO: BTC) is also up over the past month, having gained more than 5%. The coin currently trades for $32,002 apiece.
As a risky and speculative asset, cryptos like Ethereum are generally one of the first markets that short-term investors withdraw their funds from and into safer investments such as dividend stocks.
With the crypto market recovering, this could be a sign that investors have started to take a little nibble again at riskier assets. The question is whether this momentum will last moving forward.
Let’s take a look at both sides of the argument for investing in Ethereum at its current price point.
What the bulls say
There’s good reason to believe that crypto investors are feeling confident about the Federal Reserve’s intention to lessen the pace of interest rate hikes, as reported by CoinTelegraph. This may help ease pressure on risky assets such as cryptocurrencies as well as give share investors some breathing room.
The market could also be rallying in anticipation of the release of a number of earnings reports from crypto and web3 companies this week, as reported by The Block. Some companies that are due to announce earnings include Coinbase (NASDAQ: COIN), Robinhood (NASDAQ: HOOD), and Coinshares (STO: CS).
And then on Twitter, Real Vision CEO Raoul Pal posted a bullish tweet stating that he believes Ethereum will continue its bull run.
Is the ETH/BTC ratio the single most bullish major asset price chart in the world? Might well be…
What the bears say
On the opposite side of the argument, there is some evidence that could be interpreted as investors being cautious and taking profits while they can, which could pump the brakes of a continuing rally.
This insight was reported by Be In Crypto on Monday, with active Ethereum addresses making lower lows on the daily charts.
It was suggested the rally could also be artificial and the result of significant Ethereum holders, known as whales, depositing large amounts of the crypto on exchanges, causing prices to rise.
Additionally, it said Ethereum could have reached a temporary price ceiling, with sellers able to take further profits during the peak euphoria of the crypto’s rally before coming back down to earth again.