- Ethereum is near support at $2,400, and on-chain indicators support a bearish sentiment.
- Arthur Hayes is bullish on Ethereum and says ETH could outperform Solana in the next year and a half.
- Ethereum core developer, Preston Van Loon, says ETH could be the platform of choice for institutions; future upgrades focus on stability.
- Ethereum’s performance against Bitcoin likely signals a turning point for cryptocurrencies, with ETH entering an extreme undervaluation zone.
Ethereum (ETH) is trading near key support at $2,400 on Monday. On-chain indicators for the largest altcoin currently support a bearish thesis for Ether.
Arthur Hayes, co-founder of BitMEX, told Fortune Crypto in an interview that he is bullish on Ether and that the altcoin could outperform Solana in 2025. In their thesis, analysts suggest a turning point for Ethereum as the altcoin enters the undervaluation zone.
Ethereum Price Analysis
Ethereum’s technical indicators on the daily timeframe show mixed signals. Key momentum indicators, the Relative Strength Index (RSI) marks 65 and generates a sell signal as ETH falls below 70 or the “overbought” zone. The Moving Average Convergence/Divergence (MACD) shows green histogram bars above the neutral line, signaling underlying bullish momentum in Ether.
ETH is near its resistance at $2,746, the 50% Fibonacci retracement of the drop from the December 2024 high of $4,107 to the April 10 low of $1,385. The altcoin could find support at $2,226, the upper limit of a Fair Value Gap (FVG) on the daily price chart.
The weekly price chart supports a bullish thesis for ETH. The RSI is above 50 and the MACD shows green histogram bars, signaling underlying positive momentum in the Ethereum price trend.
Two key resistances for Ether to test on the weekly timeframe are $2,605 and $2,921, near the psychologically important level of $3,000. The two resistances represent the upper/lower limits of the FVGs on the weekly timeframe.
Ethereum could find support at $2,323 or $1,873 in case of a correction.
Daily and weekly price charts of ETH/USDT
Arthur Hayes Says Ethereum Could Outperform Solana
In an interview with Fortune Crypto at Token2049 in Dubai, Hayes told the reporter that he thinks Ethereum has a better performance outlook than Solana. Hayes explains:
“…mainly because it’s so hated, everyone thinks Ethereum does nothing, they haven’t done anything correctly, but it still has the highest TVL, it still has the highest number of developers, and it’s still the most secure proof-of-stake blockchain. Yes, the price hasn’t done that well from 2020 to the current moment.”
Hayes acknowledges that Solana’s price performance was better than Ethereum’s, as SOL rose from $7 to $172. However, the co-founder of BitMEX believes that Ethereum could outperform Solana over the next 18 to 24 months of the bull market.
Ethereum Core Developer Says ETH Will Ship More, Attract Institutions
Preston says: “Ideally with two smaller forks each year. Pectra included a wide range of changes across the protocol, from validator improvements to account abstraction and rollup scalability. Looking ahead, upgrades will likely be more specific in scope to allow for faster shipping and easier testing. Developers are focused on accelerating Ethereum’s evolution while maintaining the high stability of the network.”
Commenting on Ethereum’s remarkable track record of zero downtime since the chain went live, the ETH core developer says that maintaining that stability “remains a top priority.” The ETH community should not expect any decrease in performance as Ethereum evolves and the growing developer base and better coordination between teams allow for more complex upgrades.
“Ethereum’s role in the tokenization of real-world assets is only growing, but there are challenges ahead. As institutional adoption increases, scalability and user experience at the L2 level will become even more critical. While Pectra’s blob capacity expansion improves performance, fragmentation across rollups and the complexity of the broader ecosystem could slow overall adoption if not addressed. Improving interoperability between L2s and improving tools for developers will be key to maintaining Ethereum as the preferred platform for institutional use cases.”
Why Ethereum Is at a Turning Point
Comparing Ethereum to Bitcoin, analysts said that Ethereum may have seen the bottom, as the ETH/BTC ratio reaches its lowest level since January 2020. From its lowest point, the ratio has risen 38% in the second week of May and signals the beginning of a likely “altcoin season.”
An altcoin season is characterized by the top 75% of tokens ranked among the 50 assets with the largest market capitalization outperforming Bitcoin in a 90-day period.
Analysts predict a return of altcoin season, as historical lows in the ETH/BTC ratio have previously marked the start of an altcoin season and have preceded better overall performance of altcoins in 2017, 2018 and 2019.
ETH/BTC Price Chart | Source: CryptoQuant
Analysts note in their report that investors now prefer the purchase of Ether through ETFs. The proportion of ETF holdings has increased since April, supporting the growing demand for Ethereum. Key catalysts such as the rally of the ratio from its lowest point, the successful implementation of the Pectra update and a more favorable macroeconomic environment are likely influencing the price of Ether.
In addition, exchange inflow data supports Ethereum’s gains, as selling pressure is relatively low compared to Bitcoin. Relative to the largest cryptocurrency, this could be a catalyst and push the altcoin higher, likely to retest the $3,000 resistance and the 2024 peak above $4,100.
Stay ahead of the curve in the fast-paced crypto world – explore the latest updates and trends at Cryptonewsfeeds.com.
