Ethereum Has Been A Major Disappointment: Trader Weights In On This Crypto Cycle
This crypto cycle achieved some remarkable feats during Q1 2024, including the highest monthly and quarterly close in Bitcoin (BTC) history. However, BTC suffered a retrace that dragged Ethereum (ETH) and the rest of the crypto market down as the years second quarter started.
Now that we are one month into Q2, the market faces another correction. The most recent retrace became the deepest of the cycle, with Bitcoin nosediving into the $57,000 support zone and Ethereum falling below $3,000. Despite the markets stumble, analysts remain optimistic for whats to come.
What Makes This Cycle Different?
Traders and analysts have urged investors not to panic about the retraces yet. A broader look shows that the market is above levels not seen since the last bull run. As many have discussed, theres a significant resemblance between this cycles performance and previous ones.
However, analysts have also pointed out the singularities of this bull run. Compared to the 2020 cycle, altcoins didnt even run that hard over the last few months, as renowned analyst Altcoin Sherpa highlighted.
After Wednesdays correction, trader and economist Alex Krüger weighed in on this cycles performance. Krüger concurs with some of Sherpas points, considering that the markets too many options have made the playfield more convoluted.
Some thoughts on the current crypto cycle
#1 The crypto cycle has been almost entirely driven by the bitcoin ETF.
#2 ETH has been a major disappointment, but it has performed well overall for stakers and airdrop farmers.
#3 Solana established itself as the chain of choice for
Alex Krüger (@krugermacro) May 1, 2024
Similarly, he also has noticed the desire to focus on making a quick buck and investing in short-term hype rather than on longevity.
The trader highlighted that the Bitcoin exchange-traded funds (ETFs) have almost entirely driven this cycle. Besides BTC, memecoins have been the dominating narrative of the bull run, ranking among the top gainers of Q1 2024.
Moreover, Krüger asserted that most market participants who missed the Bitcoin ETF run went all in on altcoins to compensate. As a result:
They deployed late and poorly, going in larger at higher levels, and are now seething and at a loss, as too many altcoins have given up their entire 2024 gains in the last month.
Ethereum Disappointing Run
One of the crucial points of Krügers analysis is Ethereums overall unsatisfactory performance. To the crypto veteran, the second-largest cryptocurrency by market capitalization has been a major disappointment even though it has performed well for stakers and farmers.
Despite seeing massive gains alongside Bitcoins run, Ethereum has not been able to challenge its all-time high (ATH) price set over two years ago. Furthermore, Solana overtook Ethereum after establishing itself as the chain of choice for retail traders.
Its worth noting that the turmoil surrounding Ether and the Ethereum Network has seemingly affected the tokens recent performance. The king of altcoins is currently facing severe regulatory scrutiny.
The suspicion of a spot Ether ETF rejection from the US Securities and Exchange Commission (SEC), alongside the news of the agencys investigation on the assets classification as an unregistered security, seems to have created uncertainty around ETH.
Ethereums current landscape has reignited deeming conversations against its founders and the asset, possibly fueling the doubtful sentiment surrounding a sector of the crypto community.
Despite the challenging landscape, many analysts consider that investors should not be bearish on Ethereum. After falling 4.5% and 14.39% in the weekly and monthly timeframes, ETH has recovered 3.3% of its price in the past 24 hours.
Ultimately, Krügers consideration concludes that the cycle is not over. However, he points out that investors need to move out of the panic area and reignite the majors before finding a new narrative for this run.
Text source: NewsBTC
