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Ethereum is the laggard in this bull cycle. When Bitcoin soared to record all-time highs, falling above $70,000 in March, Ethereum prices struggled to break $4,000. When that happened, the best the coin could do was to retest $4,100 before selling off aggressively.
And in the past seven months, after the second-most valuable cryptocurrency hit its 2024 highs, it has fallen nearly 40%. Given its performance over the past three months, there are fears that Ethereum could suffer further losses. Technically, this could be the case if it fails to break the $3,000 level in the coming sessions.
Don’t blame Ethereum or its leaders for ETH’s poor performance
Moving to X, one of the analysts He believes ETH lags behind Bitcoin, Solana, and even Tron, not because of how the network is designed or led. In his view, the poor performance over the past seven months is worrying “uninformed” investors.
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Admittedly, after prices peaked in March, Vitalik Buterin and the Ethereum Foundation unloaded their stocks. According to Dune, it was the foundation transfer currencies regularly.
On September 6, they transferred 1,000 Ethereum when the coin was trading at $2,300. Most of these coins were sent to exchanges for liquidation. Although Buterin sells Ethereum from time to time, the co-founder has been heavily selling meme coins and donating to various charities around the world.
Typically, when a senior executive or institution sells, it is bearish. However, referring to the analyst’s assessment, their actions, including several other actions focused on improving the network, are not a major concern.
Will ETH be a better store of value than Bitcoin for growth?
The analyst at X believes that ETH is declining because investors lack knowledge about the fundamental strengths of the project. More importantly, the argument is that ETH could be a better store of value than gold. The observer insists that Ethereum and Bitcoin are competing, and claiming otherwise is false. These two networks want to eventually control the market.
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By far, Bitcoin is the most valuable. On the other hand, Ethereum is the most active smart contract platform, offers more diversity and is “richer” than the first blockchain.
For ETH to grow in strength, it must prove itself as a superior store of value, better than Bitcoin. This will require the network to have strong supply dynamics and a greater focus on finance as a core use case. Once this happens, ETH will be more attractive not only to investors but also to developers.
Right now, Ethereum’s strength is growing, and you look at the net contraction of ETH since EIP-1559, and you look at Ultrasound funds. At the same time, its evolving ecosystem is thriving, expanding the reach of the mainnet. Overall, the coin could benefit in the long term, pushing the valuation higher.
Featured image from DALLE, chart from TradingView