Ethereum

2024

United

While Ethereum struggles to regain the Q1 2024 momentum, currently tethered close to the psychological $3,000 level, one trader remains bullish. 
Taking to X, the analyst&nbsp;<a class="editor-rtfLink" href="https://twitter.com/ryanberckmans/status/1788665200016552099" target="_blank" rel="noopener nofollow">posts</a>&nbsp;several reasons to negate concerns by skeptics even with the coin trading 30% from March 2024 highs when prices broke above $4,000. By this take, doubts about future gains could be unfounded as they paint an overly pessimistic outlook for the second most valuable cryptocurrency.&nbsp; 
<h2 id="ethereum-is-under-pressure-here-s-why">Ethereum Is Under Pressure: Here’s Why</h2> 
Ethereum is in a bearish breakout formation at press time following sharp losses in mid-April. Although there are hints of strength, the rejection from $2,800 wasn’t enough to assuage fears.&nbsp; <a href="https://www.tradingview.com/x/cvcEN8HL/" rel="nofollow noopener" target="_blank"><img loading="lazy" decoding="async" class="size-full" src="https://www.tradingview.com/x/cvcEN8HL/" alt="Ethereum trending sideways on the daily chart | Source: ETHUSDT on Binance, TradingView" width="1233" height="592"></a> 
As prices range within a $500 zone capped at $2,800 and $3,300, bulls have a chance, though sellers could also press lower, continuing the losses of April. 
There are multiple reasons to support the bearish forecast. Some investors, the analyst observes, are still hesitant to get exposure to ETH because of Bitcoin and its swelling layer-2 ecosystems.&nbsp; 
The launch of the Runes Protocol saw activity flow to Bitcoin, pushing transaction fees on the world’s most valuable network. Trading fees have fallen, as seen on&nbsp;<a class="editor-rtfLink" href="https://ycharts.com/indicators/bitcoin_average_transaction_fee" target="_blank" rel="noopener nofollow">YCharts</a>&nbsp;on May 10. 
<img loading="lazy" decoding="async" class="size-full wp-image-299383" src="https://bitcoinist.com/wp-content/uploads/2024/05/Screenshot667.png?resize=1024%2C549" alt="Bitcoin transaction fees | Source: YCharts" width="1024" height="549" srcset="https://bitcoinist.com/wp-content/uploads/2024/05/Screenshot667.png?resize=1024%2C549?w=1242 1242w, https://bitcoinist.com/wp-content/uploads/2024/05/Screenshot667.png?resize=1024%2C549?w=640 640w, https://bitcoinist.com/wp-content/uploads/2024/05/Screenshot667.png?resize=1024%2C549?w=768 768w, https://bitcoinist.com/wp-content/uploads/2024/05/Screenshot667.png?resize=1024%2C549?w=980 980w, https://bitcoinist.com/wp-content/uploads/2024/05/Screenshot667.png?resize=1024%2C549?w=750 750w, https://bitcoinist.com/wp-content/uploads/2024/05/Screenshot667.png?resize=1024%2C549?w=1140 1140w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1"> 
Beyond this, there are concerns that the United States Securities and Exchange Commission (SEC) might classify ETH as a security, leading to stricter regulations. Moreover, <a href="https://bitcoinist.com/solana-meme-coins-set-to-explode-in-2024-bull-run/" target="_blank" rel="noopener ">Solana</a>, a modern high-throughput blockchain, is seen as a stiff competitor considering its surge in activity, mostly from meme coin projects.&nbsp; 
<h2 id="analyst-here-s-why-eth-will-rise">Analyst: Here’s Why ETH Will Rise</h2> 
Though the threat from Solana and other low-fee and scalable platforms, on top of the United States SEC concerns, is&nbsp;real, the analyst is upbeat. Explaining in a bid to dismantle cause for worry, the analyst dismisses the Bitcoin layer-2 ecosystem as “trash.” Though&nbsp;popular, the analyst thinks it will always be inferior to Ethereum’s in functionality and practicality.&nbsp; 
Beyond this, the analyst adds that though the United States SEC threat exists, it’s unlikely to be successful. Even if it is, powerful political and economic forces like Wall Street will continue to support Ethereum’s growth. 
Thus far, Wall Street players like BlackRock have expressed interest in issuing spot Ethereum exchange-traded funds (ETFs), which has boosted confidence. 
Related Reading: <a href="https://bitcoinist.com/xrp-ledger-validator-japanese-financial-titan/" target="_blank" rel="noopener ">XRP Ledger Validator Launched By Japanese Financial Titan: Details</a> 
Moreover, the analyst downplayed Solana’s strengths, suggesting its scalability and growth might be exaggerated. 
Specifically, the analyst noted the existence of equally superior layer-2 scaling solutions for the Ethereum-like Base. From a security perspective, Solana also has limited client diversity, negatively impacting the network reliability.&nbsp;

Ethereum Is Down 30% From 2024 Highs: Why Is This Analyst Super Bullish?

Table of Contents

Bitcoinist

Other articles published on May 11, 2024

All Noise is not News: Decoding Social Media Sentiment on Crypto

Bitcoin’s Bull Run On Horizon As Long-Term HODLers Remain Strong!

Furrever Token (FURR)’s ROI Forecasts: Ethereum and Solana Challenger of 2024

Insanity Bets: $1M Insanity Jackpot And More Reasons Why the GambleFi Project is Trending

XRP Price Prediction: Will XRP Crash Again to $0.30?

Meme Coins Create Massive Gains for Investors

Join our free newsletter for daily crypto updates!