Analyst Alex Krueger doubts whether Ethereum will be able to participate in a broader market rally if Donald Trump wins the US presidential election. Other analysts dispute the “Ethereum is dead” statement, arguing that Ethereum has hit rock bottom and is on the verge of a bullish reversal.
Ethereum (ETH) has been trading below the key support level of $3,000 for the past few months. Meanwhile, rivals Bitcoin (BTC) and Solana (SOL) have shown a strong desire to return to year-to-date highs. The current struggles can be seen in the chart below, which has fallen 6.86% over the past 7 days.
Fortunately for investors, the recently released 10X Research report suggests the asset could be coming back to life. According to 10X, ETH has already bottomed and is now seeing a trend reversal.
Ethereum’s macro bottom and why investors think it’s over
Macro bottoms are typically confirmed by a combination of 50-day and 200-day exponential moving averages (EMAs) and price movements. According to our analysts, ETH appears to have already formed a macro bottom at the August low of $2,127.
Meanwhile, the asset completed its falsification on October 26, suggesting it could fall further to set a new macro bottom at $2,100. This continued bearish reversal has led some investors to believe the project is over.
Source: 10X Research
An analysis of cryptocurrency analyst Alex Krueger’s recent paper reveals that despite the high activity, he remains bearish on the asset. In his post, Krueger emphasized that Donald Trump’s victory in the US presidential election could definitely trigger a bull run in the cryptocurrency market. However, he does not think this situation will affect Ethereum.
When an asset should go up but does the opposite, that’s what the market is telling you.
On the other hand, analysis of on-chain activity proves otherwise. According to our market data, Ethereum’s daily trading volume surged by an incredible 34%, with $13 billion changing hands. In comparison, Solana’s trading volume increased by 29%, with $2.8 billion changing trades. When we factor Bitcoin into this valuation, we find that its trading volume is around $23 billion after surging 56%.
Analysts also join the discussion
Agreeing with our bullish data, a prominent cryptocurrency analyst known as Income Sharks believes that the highs and lows found on ETH’s technical chart indicate a possible bullish reversal.
Source: TradingView
I’m happy to hear that everyone ended at rock bottom. It is still making new highs and lows. Supertrend remains bullish. No one said that when it was $4,000. Remember again what happened when $SOL stopped being $10?
Joining the discussion, Ethereum enthusiast VivekVentures listed three factors that can place this asset above its competitors. His first point is fundamentals. He said institutional investors and large companies such as WisdomTree, Visa, Coinbase, and Sony continue to build out Ethereum infrastructure.
Second, he believes Ethereum faces a solid contrarian opportunity and has a psychological advantage over its competitors. Finally, he believes the asset has technical advantages. According to him, the ETH/BTC pair has been struggling since the merger. However, this is only a mimic of the previous cycle’s price movements. For example, in 2020, Ethereum bounced back from stagnation and hit an all-time high in the first half of 2021.
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