QCP Capital Warns of Potential Price Adjustment for Ether Following Dencun Upgrade

Crypto News– Singapore-based digital assets trading firm QCP Capital recently indicated in a series of notes shared on its Telegram channel that Ether (ETH) prices may face a potential correction in the near future. Despite this cautionary stance, the trading firm remains cautiously optimistic about Ether’s long-term prospects.

QCP Capital Warns of Potential Price Adjustment for Ether Following Dencun Upgrade

Although Ether has surged past the $4,000 mark, reaching its highest price in two years, QCP notes a shift in market sentiment, highlighted by negative risk reversals. These reversals, which measure the difference in implied volatility between call and put options, have turned negative, largely due to the perceived low probability of a spot Ether ETF being approved in the immediate future.

QCP points out that historically, network upgrades like Bitcoin’s Taproot and the Ethereum merge have had minimal impact on pricing during bearish and sideways market conditions. However, given the current market dynamics, there could be a notable price reflexivity on Ethereum and its Layer 2 solutions. This could potentially be influenced by factors such as the already anticipated Dencun upgrade or a positive knee-jerk reaction, along with potential capital inflows into Layer 2 ecosystems.

In an interview with CoinDesk conducted via Telegram, QCP analysts elaborated on these points, shedding further light on their analysis of the Ethereum market and its potential implications moving forward.