As Ethereum (ETH) experiences fluctuations and multi-year lows in the ETH/BTC pair, some have hastily concluded that “Ethereum is dead.” However, an in-depth look at key on-chain metrics tells a different story, as market analysts reject these claims and forecast a potential price rally.
On-Chain Indicators Point to a Rebound
Despite comparisons suggesting Solana may overtake Ethereum, multiple market analysts remain confident in Ethereum’s strength. A report from 10X Research shows ETH’s weekly stochastic indicators pointing to a bottom formation, with values recently dipping below 10%. This trend has historically preceded a price floor, hinting at a possible upward turn for ETH.
ETH’s daily trading volume further challenges the idea of Ethereum’s decline. With a robust volume of $12.2 billion, Ethereum outpaces Solana’s $2.7 billion, reflecting consistent demand and market activity for the altcoin.
Technical Analysis Supports Bullish Trends
On the technical front, Ethereum continues to display an upward trend with consistent higher highs and higher lows. Crypto analyst Income Sharks has highlighted this pattern, drawing attention to Ethereum’s bullish super-trend, even as market sentiment echoes past pessimism seen with assets like Solana.
Currently, ETH is trading 7.64% lower on the weekly chart but has maintained support above $2,500. Many analysts rank Ethereum among the top three altcoins positioned for a potential rally in the near future.
Why Ethereum’s Rally May Be Imminent
Longtime Ethereum supporter VivekVentures has outlined several compelling factors that may fuel Ethereum’s resurgence:
Largest developer and decentralized application (dApp) ecosystem
Significant on-chain capital and liquidity
Layer 2 solutions enhancing scalability
Potential regulatory clarity and prospects for ETF integration
These strengths showcase Ethereum’s resilience despite recent downturns, with VivekVentures anticipating a swift upward movement in the near term.
Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
Source: https://changelly.com/blog/ethereum-debunking-myths-and-eyeing-a-potential-price-rally/
