Will Ethereum recover this cycle? – perspective by CoinGape
While Ethereum (ETH) remains a central player, it faces mounting challenges in its quest for widespread adoption. Moreover, a recent report by 10x Research suggests that Ethereum is the “basket case” in this bull run. This has raised concerns about the ETH price’s future trajectory as it lost hold on a crucial level lately.
The 10x Research report noted that despite Ethereum’s pivotal role in facilitating DApps and the NFT market, its weak fundamentals have become a cause for concern. It negatively affects Bitcoin’s trajectory due to the correlation between these crypto behemoths. In addition, the poor fundamentals also bring doom to the Ethereum ecosystem.
During the previous cycle, Ethereum was positioned as a revolutionary force set to supplant traditional banking systems. However, its failure to swiftly address scalability issues and adapt to changing market dynamics has left it trailing behind. Whilst, Bitcoin has now assumed the mantle of digital gold, leaving ETH behind.
Meanwhile, the correlation between Bitcoin and Ethereum remains strikingly high, with an R-square of 95%. This underscores the interconnectedness of the two largest cryptocurrencies. Hence, Ethereum’s struggles are proving to be a “roadblock” for Bitcoin, hindering broader fiat inflows into the crypto ecosystem.
Analysts warn of further downside for Ethereum, with price predictions suggesting a further dip. As the ETH price extended below $3,132.80, the impending decline became evident. The breach of this critical support level signals a continuation of the bearish trend, with the next target set at $2,905.30.
