Analyst Alex Kruger doubts the ability of Ethereum to join a broad market rally when Donald Trump wins the US presidential election.
Other Analysts counter the “Ethereum is dead” statement, claiming the asset has reached its bottom and is on the verge of staging a bullish reversal.
Ethereum (ETH)
has traded below a crucial support level of $3k for multiple months now. Meanwhile, its rivals,
Bitcoin (BTC)
and
Solana (SOL)
, have shown a strong willingness to return to their yearly highs. Its current struggle can be seen in the chart below as it declines by
6.86%
in the last seven days.
Fortunately for investors, a recently released 10X Research report has hinted that the asset could spring back to life. According to 10X, ETH has already bottomed out and is currently showing a trend reversal.
Ethereum’s Macro-Bottom and Why Investors Think it Is Dead
The Macro bottom is usually ascertained by the combination of 50-day and 200-day Exponential Moving Averages (EMA) and price action. According to our analysts, ETH appears to have already formed the macro bottom during the August low of $2,127.
Meanwhile, the asset completed a fake-out on October 26, signaling that it could take another nosedive to set a new Macro bottom at $2,100. This continuous bearish reversal has forced several investors to think that the project is dead.
Source: 10X Research
Analyzing a recent thesis by crypto analyst Alex Kruger, we found that he remains bearish on the asset despite its booming activities. In his post, Kruger highlighted that Donald Trump’s victory in the US presidential election could certainly trigger a bull run for the crypto market. However, he believes that this situation would not impact Ethereum.
When an asset is supposed to gyo up and does the opposite, that’s the market telling you something.
Meanwhile, our analysis of on-chain activities proves otherwise. According to our market data, Ethereum’s daily trading volume has recorded an impressive surge of
34%
with $13 billion changing hands. Comparatively, Solana’s trading volume was up by
29%
with $2.8 billion changing hands. Drawing Bitcoin into this assessment, we found that its trading volume was around $23 billion after surging by
56%.
Analysts Join the Argument
Agreeing with our bullish data, a renowned crypto analyst identified as Income Sharks believes that the higher highs and higher lows discovered in ETH’s technical chart indicate a possible bullish reversal.
Source: TradingView
Love that everyone says it’s over at the lows. Still making higher highs and higher lows. Supertrend still bullish. No one was saying these things when it was at $4k. Remind me again about what happened when $SOL was dead at $10?
Joining the argument, Ethereum enthusiast VivekVentures listed three factors that could position the asset above competitors. His first point is the fundamentals. According to him, institutional investors and heavyweight companies including WisdomTree, Visa, Coinbase, and Sony continue to build on the Ethereum infrastructure.
Secondly, he believes that Ethereum is facing a solid contrarian opportunity, and has a psychological edge over competitors. Finally, he thinks that the asset has a technical advantage. According to him, the ETH/BTC pair has been struggling since the Merge. However, this is just an imitation of the price behavior of the previous cycle. In 2020 for instance, Ethereum bounced back from stagnation to record an all-time-high price in the first half of 2021.
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