In 2025, Ethereum Is a Good Investment
Ethereum ETH$1,548 has been experiencing a difficult period lately, dropping $62 billion in market capitalization in just 15 days. Since December 2021, the ETH/BTC ratio has decreased by 77%, indicating an abysmal performance in comparison to Bitcoin BTC ($81,488). Nevertheless, a number of observers contend that this pessimism could be the beginning of a significant reversal.
Santiment, a market intelligence tool, claims that investors’ increasing pessimism about Ethereum may lead to a more optimistic prognosis for the cryptocurrency. It clarified how markets typically tend to act against popular sentiment.
Santiment also outlined the several factors contributing to Ethereum’s slow development, including developer hold-ups, high transaction prices, conflicting use case narratives, fierce regulatory scrutiny, and competition from rapidly emerging Layer-2 solutions.
Notably, Standard Chartered recently predicted that by the end of the year, XRP XRP $2.00 may overtake Ethereum in market capitalization. This prediction would have appeared unimaginable only a year ago.
Furthermore, the price of ETH has been continuously under pressure due to massive token sell-offs by long-time holders. After three years of inactivity, a “Ethereum OG” just sold close to 8,000 ETH (worth $11.8 million), according to statistics from LookOnChain.
As of this writing, Ether is down about 4% over the last day, trading at about $1,549. It hit a two-year low of $1,385 just a few days ago.
The RSI is close to 36 on the daily ETH price chart, which suggests that the market is oversold. This implies that traders may witness a potential short-term rebound.
Bollinger Bands indicate that there may be a chance for mean reversion because the price is close to the bottom band. ETH may confirm a possible trend reversal if the price is able to rise and break above the middle band (20-day SMA) at about $1,800.
With the signal line above the MACD line and red bars extending on the histogram, the MACD is still in the negative zone. In April, buyers intervened close to $14.50, which is a crucial short-term support level.
Crypto analyst Ali Martinez also pointed out that ETH is approaching a historic support zone that has previously marked cycle bottoms.
According to Martinez, this could be a major buying opportunity for investors. If Ethereum holds its current levels, a relief rally could emerge.
Disclaimer and Risk Warning
coinweck does not endorse or is responsible for any content, accuracy, quality, advertising, products, or other materials on this page. The image used in this article is for informational purposes only and is provided to us by a third party. coinweck should not be held responsible for image copyright issues. Contact us if you have any issues or concerns. Readers should do their research before taking any actions related to the company.