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Ethereum is a hedge against this bullish cycle. When Bitcoin rose to register new all-time highs, breaking $70,000 last March, ETH prices struggled to break $4,000. Once it did, the best the coin could do was retest $4,100 before dropping hard.
In the past seven months, after the second most valuable coin registered at 2024 highs, it has fallen by almost 40%. Considering its performance over the past three months, there are concerns that Ethereum could post further losses. Technically, this could be the case if it fails to break $3,000 in future sessions.
Don’t Blame Ethereum Or Its Leaders For ETH’s Underperformance
It is based on X, a single analyst he thinks ETH follows Bitcoin, Solana, and Tron, not because of how the network is designed or its leadership. According to him, the poor performance in the last seven months is affecting “uninformed” investors.
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Admittedly, after prices peaked in March, Vitalik Buterin and the Ethereum Foundation have been pulling out their stash. According to Dune, the premise was this to transfer money always.
On September 6, they moved 1,000 ETH when the coin changed hands at $2,300. Most of these letters were sent to the exchange to be finished. Although Buterin sells ETH from time to time, the founder has been selling a lot of meme coins and donating to different charities around the world.
Usually, whenever an executive or foundation sells, it’s bearish. However, pointing to the analysis of the analyst, their actions, including many others focused on the development of the network, is not a major concern.
Will ETH Be a Better Store of Value Than Bitcoin for Growth?
An analyst at X thinks that ETH is going down because investors have no idea about the underlying potential of the project. Most importantly, the argument is that ETH can be a better store of value than gold. The Observer insists that Ethereum and Bitcoin are competing, and to claim otherwise is a mistake. Both these networks want to dominate the market eventually.
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So far, Bitcoin is very valuable. On the other hand, Ethereum is a very efficient smart contracts platform, which offers more flexibility and is “richer” than the original blockchain.
For ETH to grow in strength, it must establish itself as a superior store of value, better than Bitcoin. This will require the network to have a strong supply chain and a strong focus on finance as a key enabler. Once this happens, ETH will become more attractive not only to investors but also to developers.
Currently, Ethereum is growing strongly, looking at ETH deflation since EIP-1559, looking at UltraSound fee. At the same time, its roll-up ecosystem is booming, expanding the mainnet. Overall, the coin could gain in the long term, pushing the valuation forward.
Insert image from DALLE, chart from TradingView
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