The strength of Ethereum’s price momentum has weakened considerably. Over the past 30 days, Ethereum has experienced a drop of at least 5.4%. With such a decline, several analysts are questioning Ethereum’s potential to hit a new all-time high this year. The big question is: Have Ethereum investors lost their faith? Let’s delve into what analysts have to say!
Ethereum’s Underperformance Compared to Tech Stocks
Nick Forster, a well-known crypto analyst, has expressed skepticism about Ethereum’s ability to make a significant upward move this year. He openly challenged Ethereum’s capability to compete against top tech stocks like Nvidia and Meta, which have provided substantial returns to their investors compared to Ethereum earlier this year. Since January, Ethereum has only managed to achieve a 0.98% gain.
Forster pointed out that the approval of Ethereum Spot ETFs did not provide the digital asset with the momentum that many had anticipated. This has led to growing doubts about Ethereum’s short-term potential.
The Potential for an Ether Breakout: What Experts Think
Forster gave a mere 10 percent probability for an Ethereum breakout this year. He outlined three critical conditions that would need to be met for such a breakout to occur:
- The victory of Trump in the 2024 presidential election
- The implementation of aggressive rate cuts by the US Federal Reserve
- A sudden rise in global financial liquidity
These conditions, while possible, are highly speculative and contribute to the uncertainty surrounding Ethereum’s future.
What Other Experts Think About The Possibility of An Ether Rally
Not all experts share Forster’s pessimistic view. Some analysts remain optimistic about Ethereum’s future. Titan of Crypto, for example, expressed strong confidence in an upcoming upward move for Ethereum. He referenced his observations using the Relative Strength Index (RSI) as a basis for his positive outlook.
Similarly, Yoddha, another analyst, has a bullish stance on Ethereum’s future. He boldly predicted a five-figure growth for Ethereum, suggesting that the digital asset has the potential to achieve significant gains.
In conclusion, the future of Ethereum remains uncertain. While some experts hold an optimistic view, others like Forster present a more cautious outlook. The market’s evolution will ultimately determine whether Ethereum can overcome its current challenges and achieve new highs.
Also Read: Why Crypto & Stocks Are Crashing? What to Expect Next?
