It is clearly not yet the dream market cycle for Ethereum. The race continues to crash compared to the US dollar, but also compared to Bitcoin, the number two in the market has a hard time. For months, Ethereum has been ignoring the so -called signals that the course would be “sold over”, and the Vitalik Buterin project is falling Stug.
No soil versus bitcoin
According to Yashu Gola van Cointelegraph, the fall in price is part of a long -standing trend, which started in June 2017.
At the time, Ethereum recorded a record price of 0.156 versus Bitcoin. In the meantime it has fallen to 0.022 BTC, for the lowest level since May 2020.
On the two -week graph, the RSI, which indicates whether an asset has been sold over or bought, has fallen to a low point of 23.32 points. Normally this often results in a revival, but of course there must also be fundamental reasons for that.
They are missing for Ethereum, while Bitcoin has sufficient reason to rise. Consider, for example, the creation of the Strategic Bitcoin Reserve by Donald Trump. Ethereum can put very little towards things like that at the moment.
A lot of competition
In addition, Ethereum currently has a lot of competition from other Layer-1 block chains.
Consider, for example, Solana where most of the Memecoin hype took place in recent months. Ethereum is seen by many people as slow and expensive compared to “faster” block chains like those of Solana.
The reality is of course that Solana is a piece of centralized, but the general public is not looking at that. From the perspective of the investor, it has therefore been a wrong choice to aim for decentralization, rather than speed and low transaction costs.
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Source: https://newsbit.nl/opnieuw-ethereum-crash-van-30-versus-bitcoin/
