Does this explain why this analyst chose not to add to his existing ETH position?

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Tesla CEO Elon Musk confirmed his possession of ETH, BTC, and DOGE at a recent event. Needless to say, most major cryptocurrencies were trading in the green as of July 23, with ETH finally crossing the $2k mark again.

ETH was valued at $2,055 at the time of writing, following a 3 percent increase in 24 hours.

Ethereum has always had supporters. The latest surge in the altcoin’s price sparked a new wave of supporters, who reiterated their bullish predictions for Ethereum. Host of the Mad Money show Jim Cramer, a former Bitcoin bull turned Ethereum proponent, was one of these personalities, with Cramer tweeting that,

Two clear takeaways from the cited tweet: a) Cramer is sticking to his ETH position, and b) he is hesitant to add to it for the time being.

Now, the latter isn’t a bad stance to take, especially since it highlights a hesitancy that is common among ETH traders these days, despite the cryptocurrency’s lukewarm recovery.

Ether’s MVRV (Market Value to Realized Value) ratio is one of the factors that can be highlighted here because it painted a slightly different scenario. Indeed,

“After dropping from the highs of May, the metric has struggled to pull the indicator back up. This is a testament to how the investors and market conditions dictate the value of an asset.”

In addition to this, another metric – Spent Output Profit Ratio (SOPR) – put forward a similarly bearish perspective. Nonetheless, it’ll be interesting to see ETH’s price action in the coming days on the back of the current mixed market sentiment.

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Cramer did, however, vouch for ETH and its utility cases in an interview with TheStreet. Not so long ago, an NFT version of a 1973 handwritten job application of Apple co-founder Steve Jobs was made available for auction and it was paid for in ETH.

Stressing on the influence of Musk’s comments on the price, Cramer further reiterated his bullishness by adding,

“You should go buy Ethereum for trade, ETH going to run and I may bail on half my position if we get about 20% up (for ETH) and I think we will.”

He further stated, “Musk is out there, says he buys Ethereum, therefore Ethereum goes higher. It’s a “pied piper security.”

 

Several other community members have come forward to speak about the altcoin too. For example, Raoul Pal in a podcast projected ETH to soon overtake Bitcoin, claiming that the latter had “only a few years left” in that position.

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