A Closer Look
Ethereum's recent price decline has raised concerns among investors. However, on-chain data and technical analysis suggest that this period of underperformance may soon be over.
Cryptoquant, an on-chain data provider, suggests that Ethereum's market shakeout could lead to a bullish rebound. Their analysis of the futures market shows that significant liquidations of long positions often precede price rallies. This occurs as the futures market stabilizes and spot buying pressure begins to dominate.
The recent downturn triggered a wave of long liquidations, reaching levels not seen since November 2022. With the futures market potentially reset, there's room for renewed interest. If demand picks up, Ethereum could be on the verge of an impulsive bullish surge.
Crypto trader DonAlt sees potential in Ethereum's chart, while another trader expresses concerns about competition from Bitcoin, Solana, and emerging layer-one technologies. The recent announcement of a Bitcoin strategic reserve by former President Donald Trump has drawn institutional attention away from Ethereum.
This trader believes that institutional investors are reevaluating alternative blockchains based on metrics like Miner Extractable Value (MEV) and decentralized exchange (DEX) volume. Retail investors, on the other hand, are focusing on meme coins, often ignoring Ethereum in favor of smaller, high-risk plays.
The influence of Ethereum as an institutional asset class will be explored at Benzinga's upcoming Future of Digital Assets event on November 19th. Additionally, a top technical analyst suggests that Bitcoin's support level lies at $60,000, while caution is advised with Ethereum and Solana.