Doubts Linger About Ethereum’s Ability to Rally in the Market After Trump’s Win
Analyst Alex Kruger has expressed skepticism regarding Ethereum’s potential to join a broad market rally in the event of Donald Trump winning the US presidential election. However, other analysts have countered this “Ethereum is dead” stance, stating that the asset has hit its lowest point and is on the cusp of staging a bullish reversal.
Ethereum (ETH) has been trading below a critical support level of $3,000 for several months now. In contrast, its competitors, Bitcoin (BTC) and Solana (SOL), have shown a strong willingness to regain their yearly highs. The chart below exemplifies Ethereum’s ongoing struggle, with a decline of 6.86% in the past week.
Fortunately for investors, a recent report from 10X Research suggests that the asset could soon rebound. According to 10X, ETH has already reached its bottom and is currently undergoing a trend reversal.
Ethereum’s Macro Bottom and the Perception of Its Demise
The identification of a macro bottom typically involves a combination of the 50-day and 200-day Exponential Moving Averages (EMA) and price action. Our analysts believe that ETH has already formed its macro bottom during the low point in August, when it reached $2,127.
Furthermore, the asset experienced a fake-out on October 26, indicating the possibility of another significant drop to establish a new macro bottom at $2,100. This continuous bearish reversal has led many investors to believe that the project is doomed.
Analyzing a recent thesis by crypto analyst Alex Kruger, we discovered that he remains bearish on the asset despite its recent activities. Kruger highlights that while Donald Trump’s victory in the US presidential election could trigger a bull run for the crypto market, he does not believe Ethereum will be affected.
“When an asset is expected to go up and does the opposite, that’s the market telling you something,” Kruger asserts.
However, our analysis of on-chain activities presents a different picture. According to our market data, Ethereum’s daily trading volume has surged by an impressive 34%, with $13 billion in trades. In comparison, Solana’s trading volume increased by 29%, amounting to $2.8 billion. Bitcoin’s trading volume reached $23 billion after a significant surge of 56%.
Analysts Weigh In on the Debate
Supporting our bullish data, well-known crypto analyst Income Sharks believes that the higher highs and higher lows evident in ETH’s technical chart indicate a potential bullish reversal.
“It’s interesting that everyone claims it’s over when it’s at its lowest. We’re still seeing higher highs and higher lows. The supertrend remains bullish. No one was saying these things when it was at $4,000. Remember what happened when Solana was deemed dead at $10?” Income Sharks points out.
Another Ethereum enthusiast, VivekVentures, lists three factors that could give Ethereum an edge over its competitors. First, he emphasizes the strong fundamentals, with institutional investors and heavyweight companies like WisdomTree, Visa, Coinbase, and Sony continuing to build on the Ethereum infrastructure.
Secondly, he sees Ethereum as a solid contrarian opportunity and believes it holds a psychological advantage over its rivals. Lastly, VivekVentures argues that the asset possesses a technical advantage. He notes that the ETH/BTC pair has struggled since the Merge. However, this mimics the price behavior observed in the previous cycle. In 2020, Ethereum bounced back from stagnation to achieve an all-time-high price in the first half of 2021.
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