Ethereum (ETH) is Dead – Bros Are Not Going To Like This Analysis

NAIROBI (CoinChapter.com)— Ethereum (ETH) has drawn sharp criticism from skeptics, questioning its potential to regain dominance over Bitcoin. While Ethereum remains the second-largest cryptocurrency by market cap, its performance this cycle has been underwhelming, amplifying doubts about its long-term strength.

Ethereum (ETH) Oversold Amid Bullish Divergence

Ethereum’s struggles against Bitcoin are evident in the ETH/BTC ratio. Currently sitting at 0.68 times its June 2022 value, the ratio reflects Ethereum’s sustained underperformance in this cycle. This is a deviation from past market patterns, where Ethereum often outpaced Bitcoin shortly after cycle lows.

Scott Melker, a technical trader, highlighted Ethereum’s oversold conditions on the weekly chart. He pointed to a rare bullish divergence in the Relative Strength Index (RSI). While Melker suggested this could trigger a short-term rally, the ETH/BTC pair’s decline underscores the skepticism around Ethereum’s ability to sustain any meaningful recovery.

Ethereum trades 70% below its all-time high, while Bitcoin recently hit $80,000. Critics say this highlights deeper issues, unlike Solana’s strong recovery after steep losses.

According to Santiment, large stakeholders have significantly increased their activity, pushing Ethereum’s transaction volume to $10.4 billion.

Uncertainty Looms Over Ethereum’s Path

On-chain data reveals some similarities between Ethereum’s current cycle and previous ones, but its performance continues to lag. The ETH/BTC ratio has dropped 60% since January 2022, a smaller decline than the 86% seen at the same stage in the last cycle. However, the absence of a solid recovery has left many investors doubtful about Ethereum’s ability to regain momentum.

Cameron Winklevoss pointed to growing institutional interest in this bull run, which could play a role in Ethereum’s future. On the other hand, CryptoQuant CEO Ki Young Ju warned that the futures market appears overheated, which may cause problems heading into 2025.

The ETH/BTC ratio typically falls for three to six months after Bitcoin halvings before bouncing back sharply. Analyst Charting Guy highlighted a fractal suggesting this pattern could repeat, signaling a potential rebound for Ethereum.

On-chain analyst JR backs this perspective, citing the Actual-Value-to-Investor-Value (AVIV) indicator as a sign of a potential reversal.

Ethereum’s struggles against Bitcoin have drawn criticism, but historical data and technical signals hint at a possible recovery. Whether its bear market resilience will lead to a lasting comeback, however, remains uncertain.