Ethereum, the world's second-largest cryptocurrency, has come under fire for its underperformance compared to fast-rising rivals such as Bitcoin and Solana.

Ethereum,$ETH

It has been ridiculed on social media for trading around $3,300, about 33% below its all-time high of $4,878 in November 2021. However, analysts and investors say Ethereum could emerge from the recession in the near future, with some predicting it could set a new record by reaching $10,000 by 2025.

Despite trading around $3,000 in recent weeks, Ethereum appears poised for a change. Bitwise’s head of research Ryan Rasmussen emphasized the renewed institutional interest, saying: “A $500 million asset management firm asked us to give a presentation about Ethereum to 100 asset managers today.” This statement shows that high-level investors are showing increasing interest in Ethereum.

Optimism for Ethereum is reinforced by Standard Chartered analysts predicting that a Republican victory led by Donald Trump in the 2024 US elections could propel Ethereum to $10,000 by 2025. A crypto-friendly administration is expected to improve conditions in the sector.

Since November 5, Ethereum has gained 35%, lagging behind Bitcoin’s 45%, Solana’s 62%, and XRP’s 180% gains. Analysts attribute Ethereum’s slower progress to several factors:

  • Lack of Clear Narrative: Bitcoin’s “hard money” image and Solana’s emphasis on speed and efficiency mean Ethereum has a hard time establishing a compelling identity.

  • ETF Launch Timing: The July launch of Ethereum spot ETFs coincided with the historically slow summer months, dampening investor excitement.

  • Institutional Hesitation: Investor interest in Ethereum has fallen from 63% in June to 26% in recent months, according to reports from Crypto Insights Group.

  • Lack of Technological Appeal: Eliezer Ndinga, head of strategy at crypto asset manager 21.co, likened Ethereum to older technology, saying, “Solana feels like 5G, Ethereum feels like 2G.”

Ethereum’s complex value proposition also appears to have challenged traditional investors. Duncan Trenholme, co-head of digital assets at TP Icap, noted that his clients frequently ask whether Ethereum is just “Bitcoin Lite” or why it should be included in portfolios.

Despite all these difficulties, Ethereum continues to be a major player in the crypto market and is carrying out various studies to strengthen its position. Ethereum researcher Justin Drake has presented new proposals aimed at increasing decentralization, improving infrastructure, and protecting against future quantum computing threats. In addition, traders are speculating on the price increase, stating that the vast majority of open interest in Ethereum options supports the rise, identifying the $4,000 level as a potential rally point.