Due to the relative underperformance of Ethereum (ETH) compared to Bitcoin (BTC), some community members believe that Ethereum is dead. While others argue that the ETH bull run has not started yet.
Ethereum is one of the first Layer 1 protocols with smart contract capabilities. Later, over the years, many competitors emerged promising faster transactions and lower fees.
Therefore, some X users (Twitter) believe that the second largest cryptocurrency is dead. But is it?
Ethereum is trading at 18-month lows compared to Bitcoin
According to TradingView data, ETH is up 45% from October 2023 lows. While the flagship crypto asset Bitcoin is up almost 65% over the same period. Not to mention, Ethereum competitor Solana is up over 310% in two months.
Read more: How to buy Ethereum (ETH) and everything you need to know
Additionally, the ETH/BTC trading pair, which compares the price of Ethereum to that of Bitcoin, is trading at an 18-month low. The screenshot below shows that ETH/BTC has formed a double top chart pattern on the monthly time frame, with the neck line at 0.05.
ETH/BTC is at a critical price point and is testing neckline support. A break from the neck line could lead to a further decline.
Due to the underperformance of ETH price, some community members believe that Ethereum is dead. Additionally, renowned analyst Peter Brandt has shorted Ethereum with a target of $1,000 and $650.
ETH/BTC monthly time frame. Source: TradingView
Strong fundamentals
However, Ethereum enthusiasts argue that fundamentally, Ethereum is stronger than in previous market cycles. Total value (TVL) is $26.45 billion, accounting for 52% of all other chains' total TVL.
Additionally, the screenshot below shows that Ethereum has more revenue than Avalanche and Solana combined. Ryan Sean Adams of Bankless stated that Ethereum generates $2.7 billion in annual profits and is “the only profitable chain.”
He explained that the Ethereum bull market has not yet begun due to various fundamental factors. Not to mention, many fund managers have applied for a spot ETF for Ethereum.
Read more: How to Prepare for a Bitcoin ETF: A Step-by-Step Approach
Addressing concerns about Ethereum's death, a community member wrote on X (Twitter):
“Ethereum has a market cap of $260,000,000,000. About as much as Bank of America, which is the 36th most valuable company in the world. I think the “eth is dead” narrative is MAYBE just a bit exaggerated.”
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