Renowned American financial analyst and trader John Bollinger has acquired a small amount of the second largest crypto asset by market cap, Ethereum, after seeing its business model for six hours.
Bollinger says he doesn’t have “high confidence” in buying Ethereum
According to his tweet, he is taking a trial stance on the smallest amount he just bought. It should be noted that the veteran trader did not disclose any information on how many units of the coin he purchased.
I bought some $ethusd, a test position, last night, with a close stop – pretty close for the crypto… I liked the six-hour pattern and was looking for an entry. It’s not a high confidence trade and I’m probably ahead, but the toe is in and I’m focused now.
— John Bollinger (@bbands) January 27, 2022
While some of his supporters might have taken buying the asset as financial advice, Bollinger was quick to point out that he didn’t have “high confidence” in his position and that the timing of his transaction was perhaps not the best.
The “Bollinger Bands” trading indicator is named after the financial analyst who made a name for himself as the author of the Capital Growth Letter, a newsletter that provides technical analysis of the financial markets.
According to a recent ARK investment reportEthereum’s market capitalization could reach $20 trillion in the next decade and its value could reach $178,000.
Ethereum price drops almost 4% in 24 hours
After a broader crypto market crash that saw the value of major digital assets like BitcoinEthereum and others are collapsing massively, the price of these assets has yet to fully recoup lost gains.
Ethereum, which was trading near $5,000 in November last year, lost more than 50% of its gain as it is currently trading at just over $2,300. The asset over the past 30 days has lost 36.6% of its value and 20% over the past seven days.
However, despite the fact that the value of the token has dropped massively, the available data would show that niches like NFT which is dominated by blockchain have had a strong start to the year.
According to a previous report, it was revealed that OpenSea, a leading NFT platform, was able to beat its previous trading volume. Apart from that, NFTs like Bored Ape, CryptoPunks, etc. received renewed interest from institutional investors.