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ethereum is the laggard in this bull cycle. When bitcoin soared to new all-time highs, surpassing $70,000 in March, eth prices struggled to break above $4,000. When it did, the best the coin could do was retest $4,100 before breaking down hard.
In the last seven months, after the second most valuable currency recorded highs in 2024, it is down almost 40%. Considering its performance over the past three months, there are concerns that ethereum could post even more losses. Technically, this may be the case if you fail to break $3,000 in the next few sessions.
Don't blame ethereum or its leaders for eth's poor performance
Carrying x, an analyst x.com/AdrianoFeria/status/1849638102253408275″ target=”_blank” rel=”nofollow”>think eth is behind bitcoin, Solana and even Tron, not because of how the network is designed or because of its leadership. In his opinion, the poor results of the last seven months worry “uninformed” investors.
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Admittedly, after prices peaked in March, Vitalik Buterin and the ethereum Foundation have been dumping their reserves. According to Dune, the foundation has been ethereum-foundation-withdrawals-since-dec-2020″ target=”_blank” rel=”nofollow”>transferring coins regularly.
On September 6, they moved 1,000 eth when the coin changed hands at $2,300. Most of these coins were sent to exchanges for settlement. Although Buterin sells eth from time to time, the co-founder has been selling large amounts of meme coins and donating to various charities around the world.
Typically, when a top executive or foundation sells, it is bearish. However, in the analyst's assessment, its actions, including many others focused on network improvement, are not a major concern.
Will eth be a better store of value than bitcoin for growth?
The x analyst believes that eth is falling because investors lack knowledge about the project's fundamental strengths. Most importantly, the argument is that eth can be a better store of value than gold. The observer insists that ethereum and bitcoin compete, and to claim otherwise is a mistake. Both networks want to eventually dominate the market.
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So far, bitcoin is the most valuable. On the other hand, ethereum is the most active smart contract platform, offers more versatility and is “richer” than the first 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 strong supply dynamics and a greater focus on finance as a primary use case. Once this happens, eth will be more attractive not only to investors but also to developers.
For now, ethereum is gaining strength, considering the net eth deflation since EIP-1559, noting Money Ultrasound. At the same time, its cumulative ecosystem is booming, scaling the mainnet. Altogether, the currency could benefit in the long term, raising its valuation.
Featured image of DALLE, TradingView chart
