Despite the bearish claims, new on-chain indicators indicate that Ethereum may be poised for a comeback. With daily trading volume reaching $12.2 billion, ETH activity has outpaced rivals such as Solana, indicating continued demand as analysts predict a reversal.
Weekly Stochastic Indicator Shows Ethereum Bottom
According to Coingape, several market analysts have expressed their support for Solana, as the world's largest altcoin has received increasing calls to compare it with Ethereum. 10X Research report states that ETH weekly stochastic indicators show the altcoin is forming a bottom.
After falling below 10%, the indicator again shows a change in trend. If this has happened in the past, it indicates that the Ethereum price is nearing its bottom.
Strong trading volumes highlight continued demand for Ethereum
However, Ethereum’s daily trading volume shows that the altcoin is not dead. Bitcoin's daily trading volume is $21 billion, while Ethereum's daily trading volume is expected to be closer to $12.2 billion. In contrast, the Solana (SOL) market is worth $2.7 billion daily. Ethereum (ETH) has a higher trading volume than Solana (SOL), indicating strong demand for the world's largest cryptocurrency.
Additionally, Ethereum’s technical chart also shows rising highs and falling lows. A renowned expert from Rich Crypto said:
“I'm glad to hear everyone said it ended at the bottom. We're still making new highs and lows. The supertrend is still bullish. No one was saying that when it was $4,000. $SOL is gone at $10. Please remember what happened when.
Analysts predict potential rise in ETH
Even though it has held up against the $2,500 support, ETH price is down 7.64% on the weekly chart. Some crypto experts, along with two others, are predicting a rise in ETH this week.
Key Factors Behind Ethereum’s Potential Rise
An Ethereum supporter named Vivek Ventures identifies three factors that will continue to increase the value of altcoins.
- Basic: Despite the bleak picture, institutional investors are still choosing Ethereum for product development and growth. On Ethereum, asset management firm BlackRock debuted its first tokenized fund. Credit card company Visa has also started tokenizing assets on its network. Coinbase, Sony, and Kraken are all working on Ethereum-based Layer 2 solutions, while WisdomTree is rolling out money market funds on its platform.
- Psychological: According to Vivek, many are predicting the “death” of ETH as it appears to be unpopular. As a result, he believes ETH is either going downhill or facing a good contrarian opportunity.
- technical: Ethereum has been fighting Bitcoin all along, but the ETH/BTC pair has struggled since the merger. If market cycles are to be believed, the ETH/BTC pair experienced a similar stagnation in 2020 before rebounding and tripling in value in the first half of 2021, according to VivekVentures.
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