Ethereum's Conflicting On-chain Metrics Hint at a Retest of $1,750

EIP1559 Could Cause a Bounce, But It Might be a Dead Cat Bounce

In the concluding remarks of the elaborate report, the team at Santiment went on to caution that Ethereum could experience a dead cat bounce leading up to, or after the implementation of EIP1559. They explained this scenario as follows.

It’s all speculative at the moment and no one will really know how the market will react to the implementation [of EIP1559]. It could be “buy the rumour, sell the news”.

At the end of the day…. once the money making opportunities dry out (be it in degen coins or legit projects), participants will eventually leave, just like what we seen in 2017/18’s cycle….

In summary…ETH’s price action isn’t looking all that good, setting it at risk of yet another leg down. But if we do get a bounce, it could be a dead cat one if nothing changes.

[Photo by Zoltan Tasi on Unsplash]

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