VanEck Head Researcher Says Ethereum is Oversold, Predicts Speculative Interest Will Return to Propel ETH
VanEcks Head of Research believes Ethereum is oversold and predicts renewed speculative interest will drive its market recovery.Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has seen a 7.9% price increase over the past 24 hours. As of this writing, ETH is trading at $2,823 after a minor retracement from earlier gains.This recent uptick follows a year of underperformance relative to Bitcoin (BTC), with the ETH/BTC pair consistently reaching multi-year lows. However, recent market movements and analysis suggest a possible shift in Ethereums market dynamics.Weighing In on Ethereums PositionIndustry analysts have offered varying views on Ethereums future. Matthew Sigel, Head of Digital Assets Research at VanEck, believes Ethereum is currently oversold. He also pointed to the likelihood of renewed speculative interest in the asset during a discussion hosted by The Tie, a digital asset research and data platform, on November 7.https://twitter.com/vaneck_us/status/1854314157375361252The event, which included key players from Grayscale, BlockTower Capital, and FalconX Network, explored how the U.S. elections might impact both macroeconomic conditions and digital asset markets.Meanwhile, VanEcks Ethereum ETF (ETHV) has struggled to maintain momentum. While the ETF saw a modest $3.9 million inflow on October 21, it has since failed to attract significant new capital. Nonetheless, other analysts remain bullish on Ethereums prospects.Further Industry Optimism about EthereumThe pseudonymous trader Byzantine General recently suggested that a significant short squeeze could be a game-changing event for Ethereum. In his words, ETH could be getting set for "a monster rally."Also, in a post on X today, analyst Miles Deutscher highlighted that Ethereum has outperformed Bitcoin over the last 24 hours.Similarly, prominent analyst Benjamin Cowen pointed to the ETH/BTC trading pair as a key indicator. Cowen believes that if the pair breaks above its Simple Moving Average (SMA), it could signal that Ethereum has already reached its lowest point against Bitcoin, further reinforcing bullish sentiment.Critics Highlight Ethereums Governance IssuesCritics like Justin Bons, founder of Cyber Capital, argue Ethereum's bullish potential is limited due to structural issues. He believes Ethereum is "cooked," citing the overemphasis on Layer 2 (L2) scaling solutionsdriven by venture capitalthat prioritize profit over decentralization.Bons argues this has stunted development on Ethereums Layer 1 (L1) and created risks around censorship and centralization, which undermine user trust.He also points out that L2s offer higher financial incentives for developers, potentially discouraging L1 scaling efforts. According to Bons, this dynamic mirrors challenges in Bitcoin's governance, highlighting broader issues in Ethereums ecosystem that may require reform.https://twitter.com/Justin_Bons/status/1850927134241697869
Text source: The Crypto Basic
