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In a recent post on X, experienced crypto expert Ali Martinez suggested that Ethereum (ETH) might have already finished its market collapse stage for this market cycle. It’s important to note that the second-largest cryptocurrency by market cap has dropped over 55% in the last year.
Is Ethereum Concession Over?
Unlike Bitcoin (BTC) and other altcoins like XRP, Solana (SOL), and SUI, Ethereum has experienced a difficult two years. Two years ago, on April 11, 2023, it was priced at $1,892, but at present it is around $1,560, which is more than 17% lower.
On the other hand, BTC has risen from around $41,000 two years ago to $82,127 now at the time of reporting, an increase of around 100%. While SOL is currently priced lower than in April 2023, it did reach a new all-time high (ATH) of $293 at the start of this year, in January, unlike ETH.
It’s no surprise that the mood around ETH, from both individual and institutional investors, is at one of its lowest points. However, Martinez thinks that experienced investors might be investing in ETH at these low levels, expecting the price to bounce back soon.
The expert highlighted that Ethereum’s Entity-Corrected Dormancy Flow has suddenly fallen under one million. Martinez added:
This usually signals a big-picture low point, meaning $ETH could be cheaper than it’s really worth, and long-term holders do not want to sell. It also means that people’s mood is negative about it, the majority of short-term investors may have already sold, and long-term investors might be quietly buying.
For those who do not know, Ethereum’s Entity-Adjusted Dormancy Flow is a blockchain-based measurement that compares Ethereum’s total value to how old the ETH being moved is, but it looks at real users instead of just wallet addresses. This helps show if the market is too high or too low by observing what long-term investors are doing.
If ETH continues past patterns, it may be getting close to a change in trend. In an individual X post, crypto trader Merlijn has indicated that Bitcoin Dominance (BTC.D) is getting to its highest level, which could change capital into altcoins and spark a temporary surge.
At the time of reporting, Bitcoin Dominance (BTC.D) is approximately 63.5%. If the US Federal Reserve decides to start quantitative easing (QE), it could add more money into the market, potentially causing a little spark in altcoins.
ETH Faces Challenges, But Cautious Optimism Remains
While there are several signs that ETH may be close to its lowest point, some signals show that the digital asset could face more weakness before any significant change in direction happens.
In a previous report, Martinez indicated that ETH could drop as low as $1,200 if the present selling pressure remains. On the other hand, the continued flow of money out of US-based Ethereum exchange-traded funds (ETFs) is still a worry for the asset’s short-term future.
However, the crypto expert NotWojak recently mentioned that ETH could be near a breakout, with a possible target of $1,835. At the reporting time, ETH is priced at $1,557, down by 2.3% in the last 24 hours.
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Disclaimer: We at Bitcoinik.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice, and viewers should consult their financial advisors before investing.
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