Nothing is guaranteed in the cryptocurrency market and that has become very clear for Ethereum. During the last cycle, it was the darling of the crypto market and considered the project with the most upside in the future. There were even talks of “the flippening” occurring, where it was all but certain that it would someday overtake Bitcoin in terms of market cap.
However, fast-forwarding to today, the situation for Ethereum has completely changed.
The Mood in the market has become so toxic that many experts have
In 2024 Bitcoin took off like a rocket backed by the hype behind the launch of the BTC spot ETFs. Causing its price to soar up to $73k and make a new all-time high before the BTC halving even occurred. Something that was unprecedented in Bitcoin’s history.
All the while Ethereum has been lingering on the sidelines still quite far from reaching its previous price highs. But the price isn’t the only thing that Ethereum users are worried about. Solana, a true threat in the smart contract blockchain ecosystem has emerged and has become the new “favorite child” in the crypto market. While all other “ETH killers” have come and gone just as quickly in the past. Solana has been different, has shown staying power, and has continued to become even more popular; and this could cause trouble for Ethereum.
ETH has begun to lose favor and is having a real identity crisis. Meanwhile, experts have begun wondering if Ethereum has peaked and if this could be the end of Ethereum.
Are its days numbered?
The New Rival
Ever since Ethereum has solidified itself as the top smart-contract blockchain in crypto there have constantly been new projects coming trying to dethrone it. There were EOS, Cardano, Tron, NEO, Luna, and the list goes on.
However, there is only one that has not only been able to survive his first hype cycle, but also overcome significant obstacles while still continuing to grow even more popular. Solana.
Because it is a newer project, it claims that it can do everything better than Ethereum. Faster and cheaper transactions, and being able to keep everything on layer 1. The biggest thing it has going for it is how cheap it is to use. Participating in DeFi, NFTs, gaming, and DEXs is incredibly cheap compared to ETH where many users have been priced out due to gas fas fees.
Solana is able to achieve this by putting less of a focus on decentralization. Something that is vitally important, and the whole reason why the cryptocurrency market was created in the first place. But many people forgot that along the way in order to use a cheaper blockchain.
It will be interesting to see how Ethereum handles having a real smart-contract blockchain challenger that can stand toe to toe with it for the first time in its history.
The Downtrend
There is no denying that this cycle has gone differently than most Ethereum users were expecting. One of the more surprising areas is its value when compared to Bitcoin.
During Ethereum’s peak during the last cycle in 2021, the ETH/BTC ratio soared over 0.08. Many in the market were expecting that it would soon make a new high in this ratio, blasting through the 0.10 ETH/BTC barrier.
However, since 2021 Ethereum has been down only when compared to Bitcoin. Now falling more than half all the way below 0.039 ETH/BTC.
This has caused many Ethereum investors to have their confidence in the asset shaken and reconsider their stance on the asset.
The harsh reality is that this is nothing new for Ethereum, and is actually the norm. If you look further back during the last cycle you will see that Ethereum was barely above 0.02 ETH/BTC. At that time in history, investors were feeling panicked as well. That is also the time that Ethereum began to go on one of the greatest rallies that we have ever seen in crypto.
It’s likely that this time will be very similar as well.
Slow Starter in Bull Markets
The truth is that Ethereum has always been a slow mover in the cryptocurrency market. Always lagging behind Bitcoin and waiting to see what happens.
The whole Bitcoin ETF really distorted everyone’s timeline and what they expected from the cryptocurrency market. Meaning that it sped up all of their timelines since Bitcoin had already reached a new all-time high.
It feels more painful for Ethereum users because they have watched Bitcoin and Solana rally. But this is actually the pace that Ethereum always moves at.
Traditionally Bitcoin’s price began to move about 6 to 8 months after the BTC halving occurred. We are just beginning to enter that period now. Then after Bitcoin took a breather from going parabolic, that is the moment when Ethereum and the rest of the cryptocurrency market would begin to soar.
This means that if Ethereum is quiet for another 6 to 8 months, it would be completely normal when compared to its previous history. While history in crypto never repeats, it sure does seem to rhyme often.
The ETF Effect & Bad Timing
The spot ETFs for Ethereum launched in the summer of 2024 and many were expecting it to have a similar effect on the price just like they had with Bitcoin.
Unfortunately, up until now, the price has only moved down and sideways leading many to consider them a disappointment. Or even declare that ETH ETFs don’t have the same amount of demand as their BTC counterparts.
I’m a firm believer that the largest reason for the Ethereum ETF disappointment is simply because it had horrible timing. They launched at a time when the market had lost all momentum, gone away for the summer, and confidence in the market began to stutter.
While the ETF might not have the same amount of demand as the BTC ETF, any ETF would have struggled during those launch conditions.
Instead, we need to take a wait-see approach. Its very likely that once momentum begins to return to the cryptocurrency market. That is the precise moment that these ETFs will have a huge effect on ETHs price sending it to incredible highs.
The Most Hated Rally
Over the last few months, Ethereum seems to have become the ignored family member in the room.
Investors have begun to discount it, underestimate it, and even believe that it has lost.
Never forget that there was a very similar mindset before the previous cycle in 2020. At the time many believed that Ethereum would never be able to recover, but it did.
When people begin to count out Ethereum, that is when it moves the quickest. Investors are on the sidelines buying up other crypto projects, have shorts on ETH, or are simply ignoring it.
That is why when Ethereum rallies, it will become the most hated rally. Investors will be filled with regrets for not purchasing much more. Those who have been dollar cost averaging into Ethereum over the past few years will be the real winners.
In this cycle, life-changing wealth can be made in crypto. By making just a few correct decisions your life can be changed forever. Continuing to invest in Bitcoin and Ethereum are some of those correct decisions.
How about you? Have you given up on Ethereum?
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As always, thank you for reading!
