Chart for ETH/BTC (1W)
Ethereum (ETH) might have finally lost its charm as we have seen it losing the war on multiple fronts. On one front, it has lost to Ethereum Classic (ETC), on another front cryptocurrencies like Cardano (ADA) and EOS (EOS) are threatening its dominance. Ethereum (ETH) has had enormous success when you consider the thousands of ICOs that have successfully been hosted on the Ethereum blockchain. It was also one of the most profitable coins to hold in 2017 as even investors who were late to the cryptocurrency rush could have profited more than 100x buying just last year. Ethereum (ETH) did manage to reach an all time high above $1500 but recently we have seen a fading interest in the cryptocurrency. This has to do with Ethereum (ETH)âs fundamentals more than the technicals.
The above weekly chart for ETH/BTC shows that the cryptocurrency faced a lot of pressure the last few weeks which involved a break of market structure as well as critical levels along the way. The price seems to have bottomed now against Bitcoin (BTC) but we have not seen the same level of interest as in the case of most cryptocurrencies. The technical indicators also paint a very bullish case and if this had been any other cryptocurrency, we might have seen some strong bounces. As mentioned in one of our previous analyses, Ethereum (ETH) has already broken its market cap dominance trend and lost the battle to altcoins. However, we have reasons to believe that Ethereum (ETH) has not only lost the battle; it has also lost the war.
Chart for ETH/USD (1W)
There is no doubt now that Ethereum (ETH) has lost its space to altcoins. Major players in the market are starting to lose their dominance as more and more altcoins grow in market cap. Investors seem to be more interesting in backing coins with aggressive plans that could yield them solid returns on investment rather than investing in projects out of principle. Vitalik Buterin, the founder of Ethereum (ETH) believes that investing in cryptocurrencies for financial incentives should be discouraged. In fact, he himself has taken to Twitter multiple times to discourage the use of cryptocurrencies for such motives. However, on the contrary, there are people like Rippleâs CTO who clearly tell investors how much they can gain by investing in their cryptocurrency, XRP. So, the priorities are very clear.
Ethereum (ETH) has had its days, it has grown big, now it is focused on greater things than money, which might be good for the crypto community but for the individual investor, this is a clear sign to pull their funds and put it into another cryptocurrency that is actually focused on making them money. Ethereum (ETH) has also recently picked up another fight with the miners in addition to their own infighting. Furthermore, there are serious concerns that Vitalik Buterin is running the show in a nondemocratic manner which is against the very principles on which the Ethereum blockchain was founded. However, once you make one compromise (the DAO bailout), it leads to another and then finally you land exactly where Ethereum (ETH) is at right now.