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As Bitcoin’s (BTC) price retested the crucial resistance level around $66.4k in the past 24 hours, Ethereum’s (ETH) price followed in tandem to reach a range high of about $2,638. The large-cap altcoin, with a fully diluted valuation of about $314 billion and a daily average traded volume of around $20 billion, pumped over 3 percent in the past 24 hours to trade around $2,610 on Tuesday, during the early European session.
Ethereum Bulls Attempts Market Reversal
Ethereum price has faced a major uphill in the recent past fueled by a notable selloff from institutional investors amid low demand. The US spot Ether ETFs have registered a net cash outflow of over $541 million since the maiden approval by the US SEC.
However, market trader Peter Brandt believes that Ether’s price against the US dollar is on the cusp of a bullish breakout soon. Brandt highlighted that Ether price has been forming an inverted head and shoulders (H&S) pattern, after being trapped in a correction mode below $3k for the past seven months.
Already, the ETH/BTC pair has established a major support level around 0.038, after forming a potential double bottom, coupled with a rising bullish divergence on the Relative Strength Index (RSI).
Contrasting Wall Street Opinions
The approval of spot Ether ETFs in different jurisdictions over the years has attracted significant scrutiny on Ethereum’s ecosystem and performance over the years.
According to BlackRock CEO Larry Fink, the Ethereum network will grow dramatically over the years fueled by rising liquidity and transparency. As of this report, the Ether network leads in Tao gap value locked and stablecoins market cap.
However, Justin Bons, the founder and CIO of Cyber Capital has issued a cautionary note to investors seeking to tap on Ethereum. According to Bons, the Ethereum network is effectively bankrupt, not just intellectually and ethically but also economically.
Bons noted that the Ethereum L1 network is less attractive to mainstream users due to its high transaction fees compared to its competitors such as BNB Chain, Solana (SOL), and Tron (TRX). The fact that Ethereum’s Layer Two (L2) chains are significantly benefiting economically at the expense of the L1, Bons believes that the network is in deep trouble.
For instance, one of Ethereum’s largest DeFi protocols Uniswap (UNI) is gradually rolling out its L2 network, which will further reduce the collected fees.