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Ethereum owners are definitely being tested in some tough times, with recent price action failed to create a bullish opinion with digital assets. Another major disappointment has been the performance of Ethereum exchange-traded funds (ETFs), which were launched in the US with great haste. These ETFs were seen by many market participants as the key that could unlock a significant upward movement for Ethereum. Since their introduction they have not delivered the expected results, leaving investors frustrated.
Matt Hougan, Chief Investment Officer of Bitwise, a popular crypto index fund manager, continues keep positive The idea of ​​ETH. According to him, Ethereum is still at the forefront of blockchain applications that are seeing success.
This Is Not The End Of Ethereum
I lack of positive energy in the Ethereum market has been enough to shake the confidence of experienced investors. A combination of macroeconomic uncertainties, growing competition from Solana and other blockchains, and unmet expectations surrounding Ethereum ETFs have contributed to a pessimistic view of the digital asset.
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Among the most optimistic is Matt Hougan, who shares his views in a recent memo. Hougan has maintained a bullish view on Ethereum, standing firm in his belief that the current challenges are temporary and that the asset still has the potential to rebound. Hougan asserts that although Ethereum has fallen behind the growth of Bitcoin and Solana in the year of 38% and 31%, respectively, the long-term prospects of the cryptocurrency remain strong.
In his memo, Hougan highlighted the continued dominance of ETH as the leading blockchain for scalable applications (dApps), means that it retains a large part of the work among developers who build on blockchain technology. He went so far as to compare Ethereum to “the Microsoft of blockchains.”
To support his claim, Hougan referred to notable examples of Ethereum acquisitions by large corporations. One such example is the BlackRock tokenized money market fund, which was launched in March 2024 and now has more than $500 million in assets under management. Another example is Nike’s Web3 gear platform called .Swoosh.
Ethereum has very active developers and users. As such, Hougan believes that blockchain will be first on the radar of the next big traditional company looking to create a blockchain product.
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What’s Next for ETH?
According to Hougan, Ethereum is a contrarian bet until the end of the year. What this means is that you expect Ethereum to go along with the ongoing market sentiment and surprise many investors with a bullish run at the end of the year.
At the time of writing, ETH is trading at $2,440 and is up 5.2% in the last 24 hours. This is a recent development it brings Ethereum close to testing the key resistance level at $2,450 as well.
The featured image was created with Dall.E, a chart from Tradingview.com