Ethereum “Has Been A Major Disappointment”: Trader Weights In On This Crypto Cycle
May 02 2024 - 5:00PM
NEWSBTC
This crypto cycle achieved some remarkable feats during Q1 2024,
including the highest monthly and quarterly close in Bitcoin (BTC)
history. However, BTC suffered a retrace that dragged Ethereum
(ETH) and the rest of the crypto market down as the year’s second
quarter started. Now that we are one month into Q2, the market
faces another correction. The most recent retrace became the
deepest of the cycle, with Bitcoin nosediving into the $57,000
support zone and Ethereum falling below $3,000. Despite the
market’s stumble, analysts remain optimistic for what’s to come.
Related Reading: Is This Cycle’s Bitcoin Bottom In? Analysts
Forecast BTC Bounce Back What Makes This Cycle Different? Traders
and analysts have urged investors not to panic about the retraces
yet. A broader look shows that the market is above levels not seen
since the last bull run. As many have discussed, there’s a
significant resemblance between this cycle’s performance and
previous ones. However, analysts have also pointed out the
singularities of this bull run. Compared to the 2020 cycle,
altcoins “didn’t even run that hard over the last few months,” as
renowned analyst Altcoin Sherpa highlighted. After Wednesday’s
correction, trader and economist Alex Krüger weighed in on this
cycle’s performance. Krüger concurs with some of Sherpa’s points,
considering that the market’s “too many” options have made the
playfield more convoluted. Some thoughts on the current crypto
cycle #1 The crypto cycle has been almost entirely driven by the
bitcoin ETF. #2 ETH has been a major disappointment, but it has
performed well overall for stakers and airdrop farmers. #3 Solana
established itself as the chain of choice for… — Alex Krüger
(@krugermacro) May 1, 2024 Similarly, he also has noticed the
desire “to focus on making a quick buck” and investing in
“short-term hype rather than on longevity.” The trader highlighted
that the Bitcoin exchange-traded funds (ETFs) have “almost
entirely” driven this cycle. Besides BTC, memecoins have been the
dominating narrative of the bull run, ranking among the top gainers
of Q1 2024. Moreover, Krüger asserted that most market participants
who missed the Bitcoin ETF run “went all in on altcoins to
compensate.” As a result: They deployed late and poorly, going in
larger at higher levels, and are now seething and at a loss, as too
many altcoins have given up their entire 2024 gains in the last
month. Ethereum “Disappointing” Run One of the crucial points of
Krüger’s analysis is Ethereum’s overall unsatisfactory performance.
To the crypto veteran, the second-largest cryptocurrency by market
capitalization “has been a major disappointment” even though it has
performed well for stakers and farmers. Despite seeing massive
gains alongside Bitcoin’s run, Ethereum has not been able to
challenge its all-time high (ATH) price set over two years ago.
Furthermore, Solana overtook Ethereum after “establishing itself as
the chain of choice for retail traders.” It’s worth noting that the
turmoil surrounding Ether and the Ethereum Network has seemingly
affected the token’s recent performance. The “king of altcoins” is
currently facing severe regulatory scrutiny. The suspicion of a
spot Ether ETF rejection from the US Securities and Exchange
Commission (SEC), alongside the news of the agency’s investigation
on the asset’s classification as an “unregistered security,” seems
to have created uncertainty around ETH. Ethereum’s current
landscape has reignited deeming conversations against its founders
and the asset, possibly fueling the doubtful sentiment surrounding
a sector of the crypto community. Despite the challenging
landscape, many analysts consider that investors should not be
bearish on Ethereum. After falling 4.5% and 14.39% in the weekly
and monthly timeframes, ETH has recovered 3.3% of its price in the
past 24 hours. Ultimately, Krüger’s consideration concludes that
“the cycle is not over.” However, he points out that investors
“need to move out of the panic area and reignite the majors” before
finding a new narrative for this run. Related Reading: Ethereum
Price Revisits Key Support, Can Bears Take Over? Ether is trading
at $2,999.80 in the three-day chart. Source: ETHUSDT on TradingView
Featured Image from Unsplash.com, Chart from TradingView.com
Bitcoin (COIN:BTCUSD)
Historical Stock Chart
From Apr 2024 to May 2024
Bitcoin (COIN:BTCUSD)
Historical Stock Chart
From May 2023 to May 2024