The surging borrowing rates in the Ethereum network may send “ripple effects across the Ethereum ecosystem,” says a crypto researcher.
Ether may be heading for an unstable period in the near term, as the cost of borrowing wrapped Ether has spiked and technical indicators point to overvaluation, according to a crypto analyst.
“We believe Ethereum is looking vulnerable in the near term,” 10x Research head of research Markus Thielen told Cointelegraph on Wednesday.
“The market is entering a quieter summer stretch — particularly in the US during August — while technical indicators remain deeply overbought.”
