Analyst Alex Kruger is skeptical of Ethereum’s ability to participate in a broad market rally in the event of Donald Trump winning the US presidential election.
However, other analysts oppose the “Ethereum is dead” claim, arguing that the asset has reached its lowest point and is on the cusp of 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 desire to return to their yearly highs. Its current struggle is evident in the chart below, with a 6.86% decline over the past seven days.
Fortunately for investors, a recent report from 10X Research suggests that the asset could rebound. According to 10X, ETH has already hit bottom and is currently showing signs of a trend reversal.
The Macro bottom is usually determined by the combination of the 50-day and 200-day Exponential Moving Averages (EMA) and price action. Our analysts believe that ETH seems to have formed the macro bottom during the August low of $2,127.
On the other hand, the asset experienced a fake-out on October 26, indicating that it could take another nosedive to establish a new Macro bottom at $2,100. This prolonged bearish reversal has led many investors to believe that the project is dead.
Analyzing a recent thesis by crypto analyst Alex Kruger, we found that he remains bearish on the asset despite its strong performance. In his post, Kruger emphasized that a victory for Donald Trump in the US presidential election could trigger a bull run for the crypto market, but he believes this situation would not impact Ethereum.
Our analysis of on-chain activities tells a different story. According to our market data, Ethereum’s daily trading volume has seen a significant increase of 34%, with $13 billion changing hands. In comparison, Solana’s trading volume increased by 29%, with $2.8 billion changing hands. Looking at Bitcoin, its trading volume reached around $23 billion after a 56% surge.
Supporting our bullish data, a well-known crypto analyst known as Income Sharks believes that the higher highs and higher lows observed in ETH’s technical chart indicate a potential bullish reversal.
Ethereum enthusiast VivekVentures listed three factors that could position the asset above its competitors. He points to the fundamentals, noting that institutional investors and major companies such as WisdomTree, Visa, Coinbase, and Sony continue to build on the Ethereum infrastructure. Secondly, he believes that Ethereum presents a solid contrarian opportunity and has a psychological edge over its competitors. Finally, he argues that the asset has a technical advantage, citing the struggles of the ETH/BTC pair since the Merge, but noting that this mirrors the price behavior of the previous cycle. For instance, in 2020, Ethereum rebounded from stagnation to achieve an all-time high price in the first half of 2021.