Why is Ethereum weak?
There are three main reasons:
First, the competitor Solana is extremely strong. It is not that the Solana chain itself is outstanding, but that the market makers behind it are fierce. Solana is mainly taking a people-friendly route this round, mainly relying on local dog projects to support the activity on the chain. Although it is not high-end or popular, it relies on pulling the market to attract users.
Second, Ethereum's last bull market surge benefited from decentralized finance (DEFI, pledge, lending) and on-chain leverage. However, this round has to be cut off to survive due to regulatory factors. High leverage on the chain not only generates profits but also brings huge bubbles, so it can only be cut off. Moreover, Ethereum has relied on continuous innovation before. In this round, except for the conversion to the POS mechanism, there is insufficient innovation.
Third, after the ETF is passed, Grayscale has the potential to sell. If I were a market maker, I would not pull the market at this stage.
In the long run, choosing Ethereum may not be bad. But in the short term, I will not deploy Ethereum in the early stage when the ETF is passed and Grayscale may sell coins, because it is obvious that it is difficult to pull up in the short term. During the crash, Ethereum and Solana fell by similar amounts overall, but before that, Solana rose more, while Ethereum barely rose. During the decline, Ethereum's short-term rebound was weak, while Solana's rebound was relatively strong.