Ether (ETH) Reclaims $200 Billion Market Cap as Crypto Market Rallies
Ether (ETH), the cryptocurrency that powers the Ethereum blockchain, is experiencing a rally alongside the broader crypto market. In the past 24 hours, ETH has risen by around 3%, bringing its market cap back to $200 billion. The current price of ETH is approximately $1,680, marking a more than 10% increase from its recent monthly lows.
Although Ether is the second most valuable cryptocurrency after Bitcoin (BTC), it still lags behind Bitcoin in terms of performance. While Bitcoin has seen a 16% increase in the last 30 days and an 80% increase this year, Ether has only increased by 6% in the past month and 34% this year.
Ether’s Relative Weakness and “Weak” Fundamentals
The underperformance of Ether can be attributed to several factors. Firstly, there has been limited institutional interest in recently launched Ether futures ETFs in the US. Additionally, trading volumes for spot Ether on major exchanges remain weak. On-chain activity for Ether has also been declining, with falling gas fees indicating lower ETH burn rates.
Furthermore, the supply of Ether has increased by over 100,000 since August, reducing its scarcity and impacting its value. Ethereum’s total value locked (TVL) has also been decreasing since April, potentially due to rising interest rates on risk-free US government bonds.
Price Prediction for Ether (ETH)
If Ether can break above key resistance at the $1,700 level, its price predictions may improve significantly. A successful break could lead to a run higher towards the 200DMA near $1,800 and potentially reach summer highs above $2,000.
While Ether is expected to continue rising alongside the broader market, it is unlikely to outperform Bitcoin until its weak fundamentals show significant improvements.
Crypto Alternative to Consider – Bitcoin Minetrix ($BTCMTX)
For diversification opportunities, traders can explore an exciting decentralized Bitcoin mining protocol called Bitcoin Minetrix. The protocol has already raised over $2.1 million in funds through its $BTCMTX token presale. By staking $BTCMTX tokens, investors can earn non-transferable mining credits and a share in Bitcoin Minetrix’s mining revenues.
Bitcoin Minetrix operates on the Ethereum blockchain, providing transparency and security compared to centralized cloud mining services.
Hot Take: Ethereum’s Underperformance and Weak Fundamentals Impact Its Potential
Ethereum’s recent rally has helped it regain a $200 billion market cap, but it still lags behind Bitcoin in terms of performance. Weak fundamentals, including limited institutional interest, declining on-chain activity, and increased supply, contribute to Ether’s relative weakness. Additionally, rising interest rates on risk-free government bonds affect Ethereum’s DeFi ecosystem.
To improve Ether’s price predictions and overall performance, it needs to address these weak fundamentals and demonstrate solid improvements in on-chain activity and total value locked (TVL).
By
By
By
By