The Ethereum FUD continues unabated as the price of the asset remains under pressure. Over the past 24 hours, ETH has dropped over 5%, slipping from an intraday peak of just above $2,600 to a minimum of $2,460.
Currently, it has made a slight recovery, trading at $2,550, but it still shows weakness, having fallen more than 7% since its October high of $2,760 recorded on Monday.
Moreover, the ETH/BTC ratio has continued to decline, reaching 0.0375 on Oct. 23, marking its lowest point since April 2021, according to Tradingview.
ITC Crypto founder Benjamin Cowen noted this new low and predicted that the next support level could be at 0.036. He suggested that this low may be reached by the end of the year or early January at the latest.
#ETH / #BTC has just breached the previous low. As I mentioned, if 0.038 does not hold, then 0.036 is likely to follow. I believe the low will be reached before year-end (2nd week of January at the latest).
If 0.038 fails, the next target to watch is the 2016 high of 0.036.
As I have reiterated for 3… https://t.co/0VBNPOoTHr pic.twitter.com/oEsJPzDlJg
— Benjamin Cowen (@intocryptoverse) October 23, 2024
Ethereum Bulls Remain Resilient
“From my perspective, the main criticism of Ethereum is that it’s ‘slow and expensive,’ but this only holds true for layer-1/mainnet,” he noted.
However, layer 2 solutions are fast, economical, and experience significant activity, frequently hitting new all-time highs, he pointed out. In fact, the total value locked in the overall L2 ecosystem hovers around $37.4 billion and has remained stable for the past seven months, according to L2beat.
Sassano also addressed other “criticisms” such as concerns over layer-2 centralization and fragmentation, fears about value exiting Ethereum, and marketing issues, ultimately concluding that the real concern is centered on price performance.
“It appears that these complaints only arise when ETH is underperforming against other assets – price indeed drives sentiment.”
Do people truly understand why they dislike Ethereum, or are they simply band-wagoning?
From my view, the biggest complaint people have with Ethereum is that it’s “slow and costly,” but that is only the case for L1/mainnet (which is a result of its design).
Layer…
— sassal.eth/acc (@sassal0x) October 23, 2024
Another Etherean, Ryan Sean Adams, suggested that the lack of a price rally for ETH stems from excessive bearish sentiment, noting that:
“The sole thing ETH needs right now is confidence – and that can change in an instant.”
He mentioned that while the criticisms might have been valid, they have become exaggerated, asserting that Ethereum is “thriving in every conceivable manner,” yet this will never suffice for its detractors.
What’s Next for ETH?
Market analysts on crypto X are predominantly bearish regarding ETH, forecasting further declines as memes mocking the situation and tribalism intensify.
In actuality, ETH is likely to follow Bitcoin’s movements, as it has in the past two cycles. However, until BTC establishes a new all-time high and enters price discovery, ETH is expected to remain in its current stagnant trading range at the mid-$2K level.
— Nate Geraci (@NateGeraci) October 24, 2024
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