Bitcoin and Ethereum have shown similar chart movements in most of history, however, this time Bitcoin is surging to its all-time high and Ethereum is lagging behind. With almost synchronised movements, both the coins went into a dip in August, but only the BTC managed to rebound to the same position. Neither the US elections nor the recent positivity towards the crypto market arouses ETH. Why is it not up?
When Bitcoin witnessed a 13.39% rise from last month, Ethereum had an ignorable 0.07% increase. Why ETH is not rallying as expected? Like renowned American-British investor Sir John Templeton famously said, “Bull markets are born on pessimism, grown on scepticism, mature on optimism, and die on euphoria.”, is this cynical approach towards Ethereum a starting point for another incredible uptrend?
This article will analyse the current market condition and check the reasons for Ethereum’s dryness in the charts. Additionally, we will look into the chart data and market sentiment to know whether it is a good time to invest or not. Let’s begin.
ETH’s Current Market & On-Chain Scenario
At the moment of writing this, Ethereum is trading around $2,648.42, a 4.2% increase from the past week. Both Oscillators and Moving Averages are neutral on ETH, however, the on-chain data reveals some unusual activities.
Recently, the number of ETH wallets being created has increased significantly, reaching 6,428 wallets in a single day. Analysts doubt whether it is a part of the long-term accumulation strategy by institutional investors.
Anyhow, no significant whale activities are reflected in the charts. ETH is now maintaining a steady level of around $2,600, with a slight downtrend of 0.30% in the past 24 hours. Let’s check the support and resistance.
Ethereum ETH Support & Resistance
| 1st Level Resistance | $2,729.903 |
| 2nd Level Resistance | $2,783.214 |
| 3rd Level Resistance | $2,828.419 |
| 1st Support Point | $2,612.356 |
| 2nd Support Point | $2,548.120 |
| 3rd Support Point | $2,494.810 |
Reason Behind Ethereum’s Lag
ETH’s underperformance can be attributed to a combination of multiple factors, including the ignorance from media, the fund flow to BTC and meme coins, the lack of ongoing significant activities, and more.
- ETH is not receiving significant media attention this week than BTC and certain viral meme coins. The major reason is the lack of any interesting activities inside the community to attract the masses. This decreased the number of retail investors, however, those who accumulate ETH in regular intervals are still continuing the purchases.
- ETH co-founder Vitalik Buterin’s last week comments about Bitcoin being attacked by centralized forces, implying that its current boom is because of the intervention of centralized powers, generated criticism from various web3 communities. Following negativity towards Vitalin also influenced ETH’s current dryness.
When Will Ethereum Start its Bull Run?
Most of the regular investors are focused on one of the two major cryptocurrencies, BTC. According to various analysts, when BTC reaches a saturation point, Ethereum will begin its journey, and the current dryness is because of the ongoing accumulation.
Another possibility posed by web3 experts is that Ethereum’s exciting roadmap for the future will naturally ignite its bull run. All of them placed the bullish timeline to the beginning quarter of 2025. However, some of them are not optimistic about Ethereum because of its hostility towards centralized forces, and they predict a bleeding in 2025.
What’s in ETH’s Roadmap? The Quantum Leap to Bull Run
Ethereum’s roadmap has an interesting phase called “The Splurge” which focuses on implementing defensive mechanisms against quantum computing’s power to hack wallets. The ecosystem is trying to future-proof itself, and if it develops into a form that users around the world can implement, ETH will evolve into the most important blockchain system, significantly increasing its market cap.
Ethereum’s roadmap has various other interesting plans. All these signify that long-term durability is more important than the current status. Purchasing with a long-term plan is better if you are planning to invest. Anyhow, you might be aware of the volatility and uncertainty of the crypto market, and even a small issue can cause the whole market to crash, like a butterfly effect. So, plan your moves after doing deep research.
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