Recent declines in Ethereum have fueled claims that the “king of altcoins is dead.” The ETH/BTC pair trading at multi-year lows has further intensified this sentiment. However, on-chain data and several analysts are challenging this notion, suggesting that Ethereum could be gearing up for a recovery.
Ethereum Supporters Dismiss Bearish Sentiment
In a market environment where Solana appears to be gaining support over Ethereum, many analysts still maintain that Ethereum remains in a solid position. According to a 10X Research report, Ethereum’s weekly stochastic indicators have dipped below 10%, a historical signal of a potential trend reversal, indicating that Ethereum might be forming a bottom.
Moreover, Ethereum’s daily trading volume remains strong, currently at $12.2 billion—second only to Bitcoin with $21 billion in daily volume. In comparison, Solana trails behind with a daily trading volume of $2.7 billion. These numbers reflect Ethereum’s continued dominance in terms of trading interest.
Commentator Income Sharks adds perspective, stating, “They’re calling Ethereum dead at these lows, yet it’s still forming peaks and troughs. Let’s not forget when SOL was ‘dead’ at $10.”
Can Ethereum’s Price Rebound?
Despite a 7.64% drop over the week, Ethereum holds steady around $2,500. Market analysts suggest that Ethereum could soon be poised for a recovery, and ETH advocate VivekVentures points to three key factors supporting a potential uptrend.
- Fundamentals: Despite negative sentiment, institutional investors continue to favor Ethereum. BlackRock has launched its first tokenized fund on Ethereum, while Visa has announced an asset tokenization initiative. Companies like WisdomTree and Coinbase are also building Ethereum-based products.
- Psychological Perspective: Vivek argues that many investors are underestimating Ethereum’s potential, which creates a “contrarian” opportunity.
- Technical Analysis: Ethereum has been competing with Bitcoin for years. Although the ETH/BTC pair has struggled since the Merge, VivekVentures recalls a similar stagnation in 2020, which was followed by a threefold increase in the ETH/BTC ratio in the first half of 2021.
With strong on-chain data and institutional backing, Ethereum seems to retain its potential for a comeback despite current bearish sentiment. Institutional interest and technical signals are drawing investors’ attention, pointing to a possible recovery.
Ethereum, ETH/BTC pair, institutional interest, on-chain data, trend reversal
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