🧠 How to predict the movement of a crypto? The case of Ethereum (ETH)
Predicting the movement of a cryptocurrency may seem like black magic to some, but in reality, it is about understanding the factors that directly influence its pricing. It is not about guessing: it is about observing, analyzing, and acting intelligently.
Let's take a concrete example: Ethereum (ETH), the second most important cryptocurrency in the market. What can cause its price to rise or fall drastically in a matter of hours? Here are the key factors that any trader should have on their radar:
🔧 1. Network updates
Changes like the Merge or future improvements impact market confidence.
➡️ More efficiency = more interest = potential price increase.
📉 2. Supply vs. Demand
Less issuance and more ETH locked in staking reduce supply.
➡️ When demand rises, the price does too.
🌎 3. Global economy
News such as inflation, interest rates, or international crises affect the appetite for crypto.
➡️ An uncertain world often hinders price increases.
📱 4. Sentiment and narratives
Tweets, trends, news, or rumors can move the market in minutes.
➡️ Emotion also influences the price.
📈 5. Technical analysis
Support, resistance, and chart patterns help detect entries and exits.
➡️ The charts tell their own story.
👉 Conclusion: It is not about guessing; it is about reading the signals.
The better you master these factors, the better you will trade.